This report is based on the results of an action research program in pakistan conducted by the International Water Managament Institute (IWMI). An analysis of empirical data is presented in the light of existing theoretical kmowledge on collective action for natural resources management. the report also highlights the current constraints associated with a wider application of some of these findings, which reflect the difficulties in pursuing large-scale institutional reforms in the rural sector of developing coutries. finally, the report raises some key research issues that need to be explored further.