Increasing water productivity appears at the top of most agricultural water policy agendas around the world. It is usually assumed that gains in water productivity will always directly or indirectly improve livelihoods and reduce poverty through increased water availability, higher food security and agricultural incomes. Whereas many economics studies have established a strong correlation between agricultural growth and poverty, numerous activists in India and elsewhere have increasingly questioned the productivity paradigm. This paper adopts a qualitative approach to investigate some of the links between productivity and poverty through an institutional analysis of livestock water productivity interventions across three districts of the Ganga Basin, North India. We do not pretend giving a comprehensive review of the water productivity/poverty nexus but rather discuss a few prominent issues: the differentiated forms of capitals required to access to water, equity and democratic decentralisation.