Groundwater is a critical resource for agriculture and livelihoods, particularly in semi-arid regions such as Gujarat and Rajasthan in India. However, unsustainable extraction has led to aquifer depletion and increased water insecurity. This study uses Ostrom's design principles to evaluate how Village Groundwater Cooperatives (VGCs) are transitioning toward self-governance in managing groundwater commons. Through field research in Dharta (Rajasthan) and Meghraj (Gujarat), including 33 key informant interviews and nine focus group discussions, this study assesses institutional robustness, rule enforcement, and community participation. Findings reveal that VGCs have the potential to enhance groundwater security through collective water budgeting and recharge interventions, though institutional robustness is constrained by limited formal enforcement. In Hinta, pipelines connected four wells to distribute water equitably, while in Dharta and Meghraj, traditional water-sharing agreements (two-part and three-part systems) sustained cooperation. Groundwater monitoring by trained "Bhujal Jankaars" helped farmers plan crop cycles, supporting informed crop choices that better aligned with available water supply. Despite these successes, to strengthen VGCs for effective groundwater management, formal sanctioning mechanisms are needed to address rule violations. Additionally, women's participation in groundwater management decisions and operationalising VGCs is low. Conflict resolution mechanisms are currently informal. This study suggests that because women primarily manage domestic water needs while men manage irrigation, integrating women into decision-making is essential to reconcile competing water demands and ensure the long-term viability of VGCs. The findings provide policy insights for scaling up community-led groundwater governance in semi-arid regions.