This study aims to assess the effectiveness of the small-scale irrigation schemes in Koftu, Ethiopia, in enhancing water resource utilization. The research employed various methods, including conversations, flow measurements, household surveys, and literature searches, to collect relevant information. To evaluate the performance of the irrigation schemes, performance indicators for outputs, output delivery, and financial performance were employed. The crop water requirement was estimated using CROPWAT. The results indicate that the average relative water supply and irrigation supply were 2.06 and 2.47, respectively. The output per unit-controlled area was 21094.43US$/ha, while the output per unit-cultivated area was 11212.33US$/ha. The study also found that the irrigation schemes had a high-water productivity ratio of 2.10US dollars/m3 of output and 1.02US dollars/m3 of supply per unit of water used. Additionally, the schemes showed a high level of financial self-sufficiency due to the low cost of operation and maintenance. Overall, the findings demonstrate that the small-scale irrigation schemes in Koftu, Ethiopia, have been successful in enhancing water resource utilization and improving both land and water productivity. The use of performance indicators provides a useful tool for identifying performance gaps and improvement possibilities in irrigation schemes.