The groundwater crisis in Iran, epitomized by a 22-m aquifer decline over three decades in the Kuhdasht Plain, underscores systemic socio-ecological failures driven by fragmented governance and misaligned incentives. This study investigates the interdependencies between policy, ecology, and user behavior through Ostrom's socioecological systems (SES) framework. Employing a qualitative, exploratory research paradigm and a nonexperimental design, we analyzed secondary data, including scientific literature, gray documents, reports, and governmental publications. The sample comprised 83 participants, including 35 subject matter experts and 48 key farmers with significant experience in groundwater issues. Data collection primarily occurred through indepth interviews. Findings indicate that the prevailing challenges stem from decades of unenforced extraction laws, fragmented institutional mandates, and politically driven water management. Factors such as unregulated extraction, political limitations in water management, and the absence of a systemic approach to integrated basin management, combined with ineffective enforcement of laws against violators, have exacerbated stress on water resources. Moreover, farmers prioritize water-intensive crops (e.g., sugar beet) due to market incentives and livelihood dependencies. Technical interventions alone are insufficient; restoring aquifer sustainability demands polycentric governance reforms, equitable enforcement, and livelihood diversification to align ecological and socio-economic priorities.