Over the past two decades, various management zone (MZ) delineation strategies have been developed based on approaches that have been primarily limited by the available data collection methods that are also time-consuming and costly. Recent developments in sensor technology, making a large amount of data available, are changing this situation. Computing capacity advancements make it possible for this vast volume of data to be processed and used. These latest technological advancements are increasingly transforming MZ maps into commercially viable agricultural products for large-scale adoption. The purpose of this paper is to provide a critical overview of MZ delineation approaches for applications in precision agriculture, and to compare and contrast conventional MZ delineation with advanced sensing technologies. This review shows how recent advances in sensing, geo-statistical analysis, data fusion, and interpolation technologies have enhanced the accuracy and reliability of MZ delineation, making it a viable commercial agriculture strategy. Studies from the past decade have shown that when MZ delineation techniques are used for the application of variable-rate nutrients, when compared to conventional uniform-rate application methods, farm productivity has improved. This increased quality of farm production is followed by a decline in environmental effects. Therefore the introduction of MZ also offers financial and environmental benefits and in the near future, we can expect an increase in the dissemination and application of precision farming techniques.