<p>Groundwater resources in arid regions are under increasing strain, making effective governance critical for mitigating resource degradation. Recognising the context-specific nature of water governance, and challenging the prescription of universal solutions, this study examines groundwater governance challenges and opportunities in Morocco's Middle Drâa Valley through three case studies: Faija, Fezouata, and M’hamid. Guided by governance modes, the social-ecological system framework, and incentive structure analysis, we analysed 76 semi-structured interviews, 30 structured interviews, and 2 focus group discussions. Our findings highlight diverse governance challenges shaped by each area's unique social-ecological characteristics and emerging hierarchical, self-governance, and hybrid models. Our results also indicated that institutional misalignment between self-governance institutions and governmental bodies remains a key challenge. While government-proposed aquifer contracts may provide a framework to address this issue by promoting a unified governance system, adjustments are needed to enhance resource user involvement in decision-making and ensure water users adhere to the rules.</p> Graphical abstract <p></p>