Grassed waterways (GWWs) drain surface runoff from fields without gullying along the drainageway. Secondary functions include reducing runoff volume and velocity and retaining sediments and harmful substances from adjacent fields. Grass cover (sward)-damaging sedimentation in the GWW is commonly reduced by frequent mowing, but in doing so the effectiveness of the waterway relative to the secondary functions is reduced. Our objectives were to (i) evaluate whether the maintenance of a GWW can be reduced if on-site erosion control is effective, (ii) measure the effectiveness of such a GWW, and (iii) analyze the underlying mechanisms. A long-term (1994-2000) landscape experiment was performed in four watersheds, where two had GWWs for which maintenance was largely neglected. An intensive soil conservation system was established on all fields. Runoff and sediment delivery were continuously measured in the two watersheds with GWWs and in their paired watersheds that were similar, but without GWWs. Runoff was reduced by 90 and 10% for the two sets of paired watersheds, respectively. The different efficiencies of the GWWs resulted from different layouts (doubled width and flat-bottomed vs. v-shaped drainageway). The GWWs reduced sediment delivery by 97 and 77%, respectively, but the sward was not damaged by sedimentation. Grain sizes > 50 microm were settled due to gravity in both GWWs. Smaller grain sizes were primarily settled due to infiltration, which increased with a more effective runoff reduction. In general, the results indicated a high potential of GWWs for reducing runoff volume and velocity, sediments, and agrochemicals coming from agricultural watersheds.