Generally, public investments in irrigation projects fail to deliver the desired outcomes largely due to inefficient management and use of the assets by the local level institutions. Against this backdrop, the present paper attempts to understand how the Pani Panchayats have performed in sustainable management and use of minor irrigation structures in the Indian state of Odisha. Using primary data and information collected from selected state-funded minor irrigation projects implemented in Cuttack district of the state, the paper finds that the Pani Panchayats, being backed by The Orissa Pani Panchayat Act (2002) and following a democratic decision making process, have been successful in managing the irrigation projects efficiently, especially in respect of pricing and distribution of irrigation water, maintenance of the systems, and their expansion, leading to socially inclusive and sustainable agricultural intensification in the area.