Collaboration between government agencies and communities for sustainable water governance in remote Indigenous communities is espoused as a means to contribute to more equitable, robust, and long-term decision-making and to ensure that water services contribute to broader considerations of physical, social, and economic prosperity. In Australia, the uptake of collaborative water governance in remote Aboriginal and Torres Strait Island contexts has been slow and few examples exist from which to inform policy and practice. This study identifies barriers to uptake of collaborative sustainable water governance, drawing from qualitative interviews with water practitioners working in remote Indigenous Australia and analysis of key project documentation. Thematic analysis revealed discrete barriers across five key categories: (1) governance arrangements, (2) economic and financial, (3) capacity and skills, (4) data and information, and (5) cultural values and norms, with many barriers identified, unique to the remote Indigenous Australian context. The paper provides insights into how to address these barriers strategically to create transformative and sustainable change for Indigenous communities. The results contribute to the greater body of knowledge on sustainable and collaborative water governance, and they are of relevance for broader water management, policy, and research.