How do institutions determine water-related poverty?

I am a relative newcomer to the topic of institutions. But I now appreciate, from seeing analysis in the BFPs, how institutions are key to explain how - or why- people manage collectively land and water resources in the way they do, and what can be done to improve the benefit from these resources.

I really want help to understand concepts, processes and instruments that link people together in non-random instruments. I hope that people in this blog can help provide specific examples of these. But people seem reluctant to ‘jump in’.

So let me try to break the logjam by offering the following:
In a sister BLOG, we are discussing the analysis of water, food and poverty. To help this, we have five-class simplification of the apparent water-related causes of poverty (to be honest, I synthesized these in my head from what I knew of analyses in a few basins)…they are:
1 Water scarcity [oddly, a rare cause]
2 Lack of access
3 Vulnerability to water-related hazard such as flood, drought or disease.
4 Loss of water productivity, that is loss of potential gain from water consumed due to other factors
5 Loss of resource [e.g. poverty that is induced by adverse change]
In order of magnitude, a rough guess suggests that 4 > 2 > 3> 1 (5 is possibly a special case; as Eric Kemp Benedict observes, a framework in which others operate), and that this fits the sequence of importance of institutions. For example, for (4) institutions govern the assemblage and deployment of factors such as inputs, credit, markets within the water and food system to enable people to maximize water productivity. Institutions are clearly a major determinant of access, or lack of (2) to water. Vulnerability and resilience (3) are socio-ecological entities in which institutional factors control sensitivity to hazard. I guess not much can be done about absolute water scarcity, although even there, institutions can determine to overcome physical adversity (e.g. desalination supports a highly active urban population in Dubai).