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The paper looks at the institutional and policy reforms in the context of sources and uses of water. Although the reform measures have been specific about surface water, there still is ambiguity on the groundwater situation in India. The reforms have failed to de-link the conventional linkages between right to land and right to (ground) water. Most policy reforms have been in response to the emerging crisis of water allocation, use and management. The current perspective towards water has been holistic in nature in contrast to the excessive importance to technoengineering approach that characterized the earlier period of water sector. Further, there have been changes acknowledging the rights of farmers, women and end-users as stakeholders in the whole process of water governance. In this regards, the policy changes have proceeded hand in hand with other reforms in decentralized governance, providing greater emphasis on user participation in decision making concerning water governance.