The agricultural sector in Iraq faces an existential crisis exacerbated by the interplay of two main factors: water resource scarcity and infrastructure deterioration. This study aims to analyze the impact of these challenges on sustainable agricultural development, using Al-Qadisiyah Governorate (Diwaniyah) as a case study. The study adopted a descriptive analytical and quantitative methodology. A 12 item questionnaire was designed and administered to a pilot sample of 60 farmers. Data were analyzed using Cronbach’s Alpha, Pearson correlation, and linear regression. The results revealed a strong negative relationship between water scarcity and decreased agricultural productivity (R² = 0.61). The findings also indicated that climate change and traditional irrigation networks are the most influential factors. The study affirms that investment in modern infrastructure and the implementation of climate smart agriculture represent fundamental pathways to achieving sustainability.