This paper aims to identify the current constraints in the performance of irrigation systems of Indus Basin, with special reference to the performance of the system and equity of water. It first, discusses the physical and technical constraints, then covers the institutional factors affecting the performance of the irrigation system, highlights the economic and environmental problems confronting the irrigation system. It is argued that inequity of irrigation water is present at three levels i.e. main canal, distributary and watercourse levels. Finally conclusions and recommendations are given to improve the irrigation system.