Aquifer depletion due to intensive irrigation threatens global economies, food security and ecosystems. This Perspective examines the hydrological, social and economic complexities of managing groundwater resources, focusing on the Sheridan 6 Local Enhanced Management Area in the US High Plains aquifer. Here irrigator-led conservation efforts reduced groundwater use by 25% and slowed aquifer depletion by 65% while maintaining farmers’ incomes. This success resulted from a hybrid integration of bottom-up rule development with top-down enforcement, providing flexible multi-year water allocations and aligning management with local conditions. From this, we identify transferable governance tenets for sustainable groundwater management in similar regions.