Management interest in sustainability issues continues to grow, as does the need for clearer understanding of the relationships between organizations on important sustainability topics such as the governance of water. This study aims to broaden our understanding of organizational competition and cooperation with regard to key resources. Taking the approach that everyone is a stakeholder in the natural environment, we attempt to discern the extent to which faultlines impact the decision-making processes. Our study combines resource competition theory, resource-dependent theory and institutional theory to provide new insights into faultlines research. This study is framed within the state of California and further suggests the dynamic nature of resource-constrained decision-making as our research started during the end of an extreme and historic drought and then ended during historic levels of snow/rain capture.