The irrigation of pasture for the dairy industry accounts for a large proportion of Australia’s total irrigation water use, particularly in the Murray–Darling Basin. Most pasture is irrigated using the border-check method. The dairy industry is under increasing pressure to use water more efficiently in response to water market reforms and restrictions on future irrigation water availability, creating interest in the potential of alternative irrigation methods. A field experiment was conducted at Tatura, Victoria, Australia between July 2000 and July 2002 to quantify the differences in water use, perennial pasture production and pasture composition under border-check, surge, sprinkler and subsurface drip irrigation. The experiment aimed to assess each irrigation method as it would perform under farm best management practices. Measurements included applied water, tailwater runoff, soil water status, dry matter production and botanical composition. This experiment found that sprinkler and subsurface drip irrigation used on average 2 ML/ha.year (17–23%) less water than border-check irrigation while maintaining or increasing pasture production, consequently having a significantly higher water use efficiency. Surface runoff was significantly reduced under sprinkler and subsurface drip irrigation. Surge irrigation had no advantages over border-check. Although some differences in pasture composition were observed between irrigation treatments, the trends were inconsistent from one season to the next. The high water use by gravity fed irrigation methods is attributed to a combination of higher evaporation and groundwater accessions.