The economic and institutional dimensions of water users cooperative (WUC) societies have been analyzed with regards to performance, membership and transaction costs in forming organization in the Cauvery basin of Karnataka. Field data have been collected from presidents and members of 30 WUC societies in Tirumakudalu Narasipura taluk of Mysore, Karnataka. Using cluster analysis, these have been grouped into (i) well performing, (ii) moderately performing, and (iii) poorly performing WUC societies. To understand institutional and economic dimensions, the selected WUC societies have been grouped based on command area, membership and conjunctive use of water. The odds ratio determined using logit model has indicated that for every one chance of not willing to pay additional water charges, there are seven chances of willingness to pay. Landholding size of farmer, conjunctive use and distance of the farm from canal have been found to significantly influence his/her willingness to pay for the assured summer irrigation. The mean willingness to pay amount for assured summer canal water has been found as ` 178 over and above the existing charge of ` 100. With all the odds being faced by these cooperatives, this study has revealed the inner strength of water user cooperative societies in canal water distribution through collective action.