Water use and landholding factors are widely acknowledged as major determinants of agricultural development in agrarian regions of the Indo-Gangetic basin (IGB). High attention is mainly given to irrigation policy while land is often apprehended through soil productivity aspects. However, the nexus between land scale and water consumption in respect to the economic implications of agricultural development is poorly elaborated. To this aim, this paper examines the economic effects of water use and landholding scale to farming in agricultural communities of IGB area. The research is based on an extensive survey conducted in representative areas of Pakistan, India and Nepal situated along the IGB basin. The results signify that the economic viability of marginal and small landholders and water users is threatened when the study focuses on the land scaling effects to farming. Practical recommendations towards the rescheduling of irrigation and land use policies are introduced.