India has invested millions of rupees in water resources development since independence. But the returns are very low. It is assumed that institutional and managerial problems are inhibiting for efficient use of water. In India bureaucracy is responsible for planning, designing, construction, operation, maintenance and management of large irrigation projects. Inefficient bureaucracy has been responsible for chaos and lawlessness in the water management and water distribution. Largely, the officials are docile, inactive and corrupted. Besides, they are too proudy, refuse to learn and inadequately trained to carry integrated management of agricultural water. Moreover, the conditions like lack of proper facilities, external interference, financial stringency are not congenial to work environment. Now it is high time for the government to bring alternative institutions by creating efficient and committed bureaucracy on the one hand and reducing the burden on the state by transferring management partially to beneficiaries on the other.