Has Property Rights Reform of China’s Farmland Water Facilities Improved Farmers’ Irrigation Efficiency?—Evidence from a Typical Reform Pilot in China’s Yunnan Province

China is implementing a pilot project to reform the property rights of farmland water facilities to solve the serious problems of chaotic end-of-pipe governance and inefficient irrigation from farmers. Based on microscopic research data of farm households in a typical pilot in Lu Liang County, Yunnan Province, in China, this study uses the Tobit model, and SEM was used to explore the impact of property rights reform on the irrigation efficiency of farmers and the potential mechanism paths. We further analyzed the differences in governance logic and irrigation efficiency between the two property rights models of “multiple cooperative governance” and “private contract governance” formed after the reform. The findings are as follows: (1) Compared with nonreformed areas, reformed areas have a higher promotion of adoption of water-saving technologies and a better quality of facility maintenance, which significantly contributes to irrigation efficiency, but farmers’ perception of water scarcity negatively affects irrigation efficiency; (2) there are differences between the “multiple cooperative governance model” and “private contract governance model” in terms of the mechanism paths to improve irrigation efficiency, resulting in different focuses between the two models, in which the former one has better irrigation efficiency while cutting off some of the farmers’ benefits and the latter benefits more farmers while losing some of the irrigation efficiency. Finally, this study recommends that China should continue to promote the reform of farmland water property rights while focusing on promoting water conservation technologies, improving the quality of facility maintenance and facility water supply capacity, enhancing farmers’ awareness of water scarcity, and implementing a more water-efficient “multiple cooperative governance model”. The results of this study provide a model with Chinese characteristics for developing property rights policies and governance models for farmland water facilities in developing countries