Water scarcity is considered to be the most important bottleneck in the development of agricultural sector of Iran. Therefore, water saving technology has attracted the government authorities’ attention, recently. This study investigates the effects of water saving technologies on cropping pattern and employment in Fars province. The findings indicated that investment in irrigation technology changes the cropping pattern from less capital and water-intensive to more capital and water-intensive crops. Furthermore, the aggregate area under cropping will increase as the result of water saving. Adoption of water saving technology increased employment considerably. The best state of technology for employment in all representative farms was partial investment case. The total number of labor employed in small, medium and large representative farms in this state have been increased about 56%, 17%, and 103% as compared with state of non-investment in new technology respectively.
