Groundwater is a reliable freshwater resource. Its location underground prevents it from evaporative forces. Thus it serves as storage of most of the world’s liquid fresh water. Being enclosed in the ground it is not also easily contaminated. Since groundwater can be used wherever it exists without costly treatments, there is over-dependence on the resource. Though in the past it was mainly used by rural dwellers for domestic water supply, presently, due to effects of climate change on surface water resources, pressures of population growth leading to expansion of towns and cities, groundwater is also supplied for agriculture and industrial purposes. But, the resulting effect from these additional users is the vulnerability of groundwater resources to reduction and pollution. Its importance in sustaining livelihood and development has been highly credited and its management is looked upon as a prerogative. To enhance groundwater management in the Sandveld, a qualitative content analysis approach was used to evaluate six factors considered to be highly needed in groundwater management. This background was used to find out how institutional arrangement in South Africa facilitates or constraints groundwater management in the Sandveld, a highly groundwater dependent area in the West Coast of the Western Cape. The results showed that all six factors are present, but three facilitate groundwater management while three others constrain management. The community involvement which ranked first, is deficient. Thus, institutional weaknesses that need to be strengthened have been identified.