The paper presents a land allocation model for use in water resources planning in general, and in analysing water sector investment for agricultural development in particular. The model would serve as a tool for framework planning through screening and sequencing of alternative investment modes, and in identifying viable investment options in different regions. The paper illustrates the use of this model for analysing alternative strategies for long term development of water resources in Bangladesh. In particular, the implications of alternative investment strategies underlying different projections are analysed in terms of their contributions in achieving foodgrain demand-supply balance over the next twenty years.