<p>In many irrigated regions, the failure of top–down management systems to ensure efficient water use and equitable access has spurred interest in participatory management; meanwhile, this management approach is highly subject to the collective action dilemma. While existing research has extensively focused on the extent of farmer involvement and the factors affecting their participation behavior, concrete empirical research on the role of village-level institutions remains insufficient. To fill this gap, based on survey data from 160 villages, our study uses an endogenous switching model to analyze the determinants of participation in irrigation management and a multivariate treatment effect model to examine the impact of participatory irrigation on agricultural performance. The findings indicate that villages led by college-educated village officials (CGOs) exhibit significantly higher levels of participation in irrigation governance. Additionally, village leaders’ age, psychological status, and village topography are significant determinants of the existence of a CGO in a village, which in turn has an impact on participation in irrigation management. Type of village, government investment, and number of illiterate people influence participation in irrigation management across various village contexts. Moreover, village leaders’ gender, number of family farms, distribution justice, and village water policy implementation emerge as influencing factors distinguishing participation in CGOs and non-CGOs. Participation is further found to have a positive impact on crop yield and farm revenue and to reduce irrigation water loss. The study provides empirical evidence for the role of village leaders’ educational capacity in promoting sustainable agriculture water governance and highlights actionable policy levers for enhancing collective irrigation practices in rural China. The paper concludes with policy implications to support more effective and inclusive irrigation governance in China.</p>