Sustainable tourism development depends on the input of various environmental resources as well as the scientific governance on these said resources. The governance of common-pool resources (Ostrom, 2009) such as water resources in tourism destinations require further exploration as these are often contested common-pools. Taking the Hani Terraces as a tourism case study, this study applies a qualitative method, and institutional bricolage to explores stakeholder perceptions on water resource utilization system, as well as influencing factors of their interaction leading to sustainable tourism objectives. Two key findings are: (1) due to the development of mass tourism, the main stage of collective action has shifted from agricultural water to domestic water; (2) ambiguity of the boundary between right and wrong makes it possible for different water users to achieve a certain balance through their respective capitals which entails the water commodification.