Agriculture is an important sector of the economy, but this industry consumes significant amounts of water, which is a precious and limited natural resource. Irrigation techniques and efforts to mitigate water usage influence the growth, survival, and yield of crops. However, superabsorbent polymers in combination with fertilizers can be employed to obtain sustained release of nutrients and improved water retention capacity of the soil. Despite significant recent progress in this area involving synthetic polyacrylate hydrogels, there are no industrially applicable solutions exhibiting similar performance using natural biopolymers or synthetic polymers enriched with natural components. This review focuses on biodegradable chitosan-based hydrogels (both natural and semi-synthetic), and discusses their potential agricultural and horticultural applications. The methods for synthesizing hydrogels via physical or chemical crosslinking, and the resulting functional properties of recently reported hydrogels, such as water retention and release of active ingredients, are presented herein.