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During the last two decades, various key concepts emerged in the field of water management both in developed as well as developing countries. In the developing world compulsion for the integration of ecological, social, and economic aspects of sustainable development in water management led to several debates on the notions of integration, good water governance, and participatory water management. The present empirical study on a small river basin shows that even if integration, good governance, and participation have many potential benefits, these are difficult to achieve in practice. In this context, a critical analysis of water resource management is pertinent. The Rapti is a hill-fed river basin shared by two riparian nations, i.e., India and Nepal. Due to inadequate management, the resource potential of the river basin is not fully utilized, rather the river became a symbol of underdevelopment in the …