This article investigates the current institutional arrangement concerning water governance in Nainital, India, located in the Western Himalayas. It assesses the availability of water resources, the functioning of the supply system, and sheds light on the role of institutions in managing water resources, supply, and distribution. Through qualitative methods (such as focus group discussions and key informant interviews with officials from water management institutions, citizens, etc.) supplemented by a literature review, the study reveals a complex network of institutions and stakeholders involved in water management. This complexity results in overlapping jurisdictions, leading to accountability gaps and various issues. The study identifies that in Nainital, existing institutions operate independently, impacting water governance in terms of water supply, resources, and environmental aspects. Considering the fragile biophysical environment of Nainital, the study also recommends integration of nature-centric approaches into institutional frameworks, which can be helpful in improving the resilience of water systems and promoting sustainable water governance