Lake Naivasha became a focus of international attention when it attained a Ramsar status in 1995. The lake is the major source of freshwater for the Kenya’s booming horticultural industry. There is growing evidence of excessive water abstraction to meet both the economic and social needs of communities living around the lake. Recently its management and conservation has been devolved to the local communities in a bottom-up participatory approach to replace the traditional top-down management strategy. This paper assesses the role of Community-Based Natural Resources Management (CBNRM) in achieving sustainable water management at Lake Naivasha. The results showed a diversity of stakeholders with different interests competing amongst themselves for water access which is affecting both the lake hydrology and the surrounding wetland ecosystems. Due to human activities, the effects of climate change, and the lack the capacity of various stakeholders to finance and follow through with conservation projects, the lake water has been drying over the years.