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Using the case study of the Telugu Ganga Canalin India, this paper examines the process of policy making and the role of political choices in sharing scarce water resource. The paper suggests a model of multi stakeholder institution recognising different users and their needs and frame governance rules and implement them through collective action.Findings of the study include:public policies do not merely stem from objective conditions, they are influenced by their own perceptions, electoral needs and government dynamicsthere is a need for more explicit analysis of the effects of government policies ondifferent classes, particularly the weak and marginalised sections of the societypolicy makers need to be accountable for the results of the policies made by them and implemented by bureaucracythere is a vital role for democratic structures that enhance the civil society participation in policy makingthe civil society and other groups need to lobby for policies that promote river basin planning.The paper concludes by suggesting formation of a River basin organisation which explicitly recognises stakeholder participation, public deliberations, conflict resolution, consensus building and collective action. The participation of farmers representatives, political leaders, bureaucrats, community leaders, researchers, civil society representatives and media, will have a great leverage to strengthen the performance of basin organisations and to understand the processes.
