Despite the call for a global paradigm shift in water governance—from the traditional reductionist engineering approach to the more holistic integrated river basin governance framework—a change is not yet perceptible in India’s water governance architecture. The hesitation to change has led to ecological problems and conflicts at various levels. This paper identifies the knowledge gaps that inhibit the paradigm shift and explores the lacunae in the existing institutional mechanisms and statutes. It attempts to chart a path to combat the emerging challenges in water governance in India by identifying the broad contours of a new national water policy.