The industries are Malaysian main groundwater users primarily for mineral water bottling and cooling applications. Industrial groundwater usages are charged once for well application drilling whilst the daily consumption usages are priced lower than piped water supply. Subsequently, its consumption increases yearly in addition with piped water supply being frequently disrupted. Thus this research aims to highlight the scenario with respect to daily operations of industries using groundwater. It is to identify factors that may influence any noncompliance or unsustainable abstractions of groundwater by the industries. In addition, this research evaluates related groundwater policies by the federal and states in Malaysia and discusses the probable effective groundwater governance in the country. A qualitative study was carried out involving analysis of documents and legislations, interviews involving industries, legislators and state water authorities, as well as site observations. This comparative triangulation analysis was used to find better results. Finally, findings showed the non-existence of groundwater policy in the country with insufficient and inefficiency of water management. Results also revealed the level of compliance among industries is moderate mainly due to limitations in monitoring and governance. Lack of specific legislation may perhaps be the main factors of non-performance. It proves that legal frameworks are crucial to secure the sustainability and maintain the quality of natural resources. Thus this paper puts forward an appropriate framework of governance and applications for industrial groundwater monitoring recommendations for any future research.