Through an IAEA technical cooperation project, the Turkish Atomic Energy Agency, in cooperation with the Nigde Potato Research Institute and the Soil and Fertilizer Research Institute, an innovative drip fertigation technology was implemented to improve water and nitrogen fertilizer use efficiency in potato production in the Nigde-Nevsehir Region. This technology reduced the amount of irrigation water needed by 50% and nitrogen fertilizer use by 40%, from 1000 to 600 kg N/ha. Drip fertigation technology increased water and nitrogen use efficiency by applying water and nitrogen directly to the immediate vicinity of the plant roots through a network of pipes and water emitters. Considering the magnitude and importance of potato production in the arid and semiarid areas of Turkey, the 50% reduction in crop water requirements through drip fertigation has a major impact on agricultural production and water management strategies in these areas. It was calculated that a transition from sprinkler irrigation to drip fertigation requires an initial investment cost of up to US $200/ha, depending on the sophistication of the drip fertigation system. This investment can be balanced against projected savings in time, energy, fertilizer and labour costs amounting to an estimated US $2000/ha/year. As a consequence, interest in drip fertigation has been remarkable among potato farmers in the region, so that in only three years the area under drip fertigation has increased from humble beginnings of 500 ha in 2005 to 4000 ha in 2007 and to nearly 7000 ha in 2010.