This paper explores socioeconomic conditions for rice irrigation from a small reservoir (dugout) based on a case study conducted in northern Ghana. The study delved into customary water use and management of small reservoirs as well as farmers’ scope for and interest in intensifying rice production through reservoir-based irrigation. The study found that customary use of reservoir water was multi-purpose and flexible without coordination among users. An institution for coordinating the use of reservoir water used for rice irrigation is thus required. The results also showed the financial needs for reservoir maintenance, tractor services, and agricultural inputs, which are necessary to intensify rice production but currently limited among local producers. In addition, we examined the potential for tackling these financial constraints through borrowing and use of existing farmer organizations.