Considering the importance and scarcity of water resources, the efficient management of water resources is of great imp,ortance. Adoption of modern irrigation technology is considered to be a key of increasing the efficiency of water used in agriculture. Policy makers have implemented several ways to induce the adoption of new irrigation technology. The empirical studies show that farmers are reluctant to utilize the use of new irrigation methods. This study aims to assess factors affecting on farmer’s decision on application of water saving technologies with emphasize on crop price variation and water sources. A Logit model was employed to examine the impact of different variables on use of water saving technology. The required data gathered from a sample of 204 farmers in year 2012. The results indicate that different variables such as crop price variability, water supply source, high value crops, farm size, income, education, membership in cooperatives have positive effect and variables such as age and number of plots have negative impact on the probability of adopting modern water saving technologies.