Land is a pivotal resource in agriculture production but its uneven distribution retards the welfare of developing nations. Skewed asset distribution in the rural areas is a cause of serious concern which consequently brings poverty and deprivations to the affected. Land distribution disparities were focused on to observe its relationship with different on-farm and socio-economic indicators. Nevertheless, total and partial factor productivities, gross margins, cropping intensity, crop diversity, income distribution disparities, institutional and non-institutional credit availability were also explored in three different areas categorized on the basis of water availability. It was found that land inequality dissipated the impact of all of the factors of productions including perennial irrigation and had been a major cause of income inequality. Implications of the study demand from policy makers to promulgate and implement land reforms with optimum farm size. Moreover, researchers must further highlight the dilemma of land inequality by exploring its further draw backs.