Community-based watershed management (CBWM) has gained prominence in developing world towards integrated resource management for livelihood enhancement of the poor, due to failure of large-scale river valley projects. This paradigm shift has enabled to narrow the divide between the state and community, and marks a beginning for the State towards a “learning organisation” that is adaptive to the changing social and environmental condition. The paper examines the role of State in institutionalising CBWM in three Indian states. It calls for the State to create an enabling institutional environment for coordination among institutions to emerge by devolving adequate responsibilities. This would offer opportunities for institutions to negotiate their concerns and build credibility for a long lasting institutional solution towards integrating resource management.

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