This study applies a new method and technology to measure the discharge in a lined canal in Taiwan. An Acoustic Digital Current Meter mounted on a measurement platform is used to measure the velocities over the full cross-section for establishing the measurement method. The proposed method primarily employs Chiu’s Equation which is based on entropy to establish a constant ratio the relation between the maximum and mean velocities in an irrigation canal, and compute the maximum velocity by the observed velocity profile. In consequence, the mean velocity of the lined canal can be rapidly determined by the maximum velocity and the constant ratio. The cross-sectional area of the artificial irrigation canal can be calculated for the water stage. Finally, the discharge in the lined canal can be efficiently determined by the estimated mean velocity and the cross-sectional area. Using the data of discharges and stages collected in the Wan-Dan Canal, the correlation of stage and discharge is also developed for remote real-time monitoring and estimating discharge from the pumping station. Overall, Chiu’s Equation is demonstrated to reliably and accurately measure discharge in a lined canal, and can serve as reference for future calibration for a stage-discharge rating curve.