In view of the projected world water demand, increased water use efficiency in irrigation is crucial to sustainably increase agricultural productivity. Paddy field systems are especially water demanding, though products such as rice is not only a staple food, but also constitutes a major social and economic activity providing public goods and is a key source of employment and income for the rural population in Zambia. The Food and Agriculture Organization of the United Nations (FAO) has been active to increase the understanding of the status of water use efficiency and water productivity in Zambia through implementing the project “Efficient Agricultural Water Use and Management Enhancement in Paddy Fields”, funded by the Japan Ministry of Agriculture, Forestry and Fisheries (MAFF). The project objective is to identify limits and potentials of paddy rice production at national level. The project findings presented in this report is a basis for assisting the country with the evaluation of the status of water use efficiency and water productivity of paddy fields, providing technical and policy support to enhance water resources management in Zambia. This report will help increasing the knowledge and building capacities of technical experts in relevant institutions, ministries and universities in Zambia. Its analysis of best practices will assist in determining the needs and existing gaps and what options are available to fill these gaps. Furthermore, the policy action matrix developed and the investment portfolio compiled will support the development of future financial plans in the country.