Water governance in the Rio del Carmen watershed has failed to achieve sustainable water use, generating social conflicts, water overexploitation, and grassland loss. This leaves it unable to adapt and learn, to reconcile different stakeholder perspectives and to adequately respond to uncertainty. Adaptive water governance regulates water access through flexible, inclusive and innovative institutions, increasing system adaptive capacity in the face of uncertainty. This is necessary for water-scarce systems since they suffer context-specific exposure to land degradation and climate change. This research focuses on how water governance regulates water access in the Rio del Carmen watershed, Mexico, identifying key legal and institutional features that could increase adaptation and secure water resources in the long-term. 27 semi-structured interviews were conducted with key stakeholders in the watershed, in order to understand the water governance structure and its system dynamics.