Water issues remain one of the major challenges in contemporary South Asia and a contentious issue in Indian federalism. The crisis of water commonly understood as water scarcity is currently recognized more as a crisis of management and governance in India. In spite of a large number of laws passed and policies enunciated by the central and state governments, the gap between expectations and performance has widened in regulatory policy. With increasing demand for water due to urbanization, population growth, industrialization, and modern agriculture, it has become clear that water issues need attention for the current and future needs of society and that this must lead to serious initiatives to reform water governance through law and policy enforcement. The Government of India has taken a number of steps to ensure availability, access and water quality, but despite policy initiatives, constitutional, legal, and administrative enactments, the problem of implementation and enforcement persists. This chapter explores the complexity of water policy, law, and the institutional environment in which water allocation regimes operate to guarantee sustainable management of water resources, equity, and access to its population.