In all irrigation projects, field level distribution of water is continuing to be a major problem. This task is handled departmentally. To ensure participation by the beneficiaries some innovations like 'Wara Bandhi' system has been tried. In 1978 India's first surface irrigation cooperative was formed in Surat at Mohani village. This case study makes a comparative study of the distribution efficiency of the cooperative vis-à-vis the irrigation department; on a six point indicator. The findings indicate that the cooperative organization has potential to confer a wide range of benefits to farmers as well to the irrigation department. Based on the study, certain preconditions for forming surface irrigation cooperatives are listed. The policy environment condusive for organisation and growth of new irrigation cooperatives are discussed.