Participatory irrigation management (PIM) has emerged as a popular institutional approach worldwide for the efficient management of irrigation water and field structures of irrigation systems. These decentralized institutions emphasized the greater involvement of farmers and other stakeholders in the process of decision-making as well as management of irrigation water. Over the past few decades, the policy discourse in India emphasized such decentralized management of water and promotion of PIM institutions. This chapter analyses the performance of the Pani Panchayat's (PPs) based on some of the indicators like institutional dynamics of PPs, quality of operation and maintenance, financial performance, participation in collective action and institutional sustainability of these participatory institutions. It discusses the status of PIM institutions, the initiatives of the government and issues pertaining to their implementation in the state. Financial performance as an indicator is crucial in terms of assessing the performance of PPs as it affects the regular functioning of PPs.