Modeling socio-ecological interactions are one of the essential requirements for water resource management in water-stressed areas. Mismanagement of water resource combined with extensive withdrawal by farmers in Indus Basin is putting pressure on freshwater resources. In some areas sever depletion of groundwater is evident. Waterlogging remains a bigger problems in the areas with higher surface water endowments, causing salinization; a greatest threat to long-term groundwater sustainability. Physical water management solution wouldn’t be a successful approach as it ignores water users’ behaviors; their interaction with each other and the feedback effects they receive from the system. We have developed an ABM model simulating the system by varying different agro-climatic parameters for water withdrawal behaviours of framers to substantiate a groundwater development framework in conjunction with the management of surface water. Overtime spatially distributed farmers’ caricaturized scenarios were built to include groundwater depth fluctuations for better management of water resources. Self-governing Rules (SGR) and Institutional Management Perspective(IMP) bring equity in water availability and prevent agriculture from worsening water quality parameters. However, consistency in the benefits may break down in extreme cases of climate change and spatio-physical conditions. Our water management perspectives provide improved outcomes of water withdrawal. SGR perspective managed to increase groundwater abstraction price 3 times more than the existing rates for the farmers located near water source. For the farmers located at tails IMP appears to manage resource better than other scenarios. Better and sustainable water withdrawal management requires to have area-wise policies and institutional support for promotion of norms.