Developing a methodology for the measurement of governance in the context of water management requires a clear understanding of what is meant by (good) governance, and what is meant by IWRM—terms which are often, but incorrectly, used almost interchangeably. This paper sets out the foundations developed for the STRIVER project upon which an assessment of governance could be made. It identifies the key principles of good governance as being accountability, participation and transparency, and seeks to elucidate the relationship between good governance and IWRM, especially in relation to the specific role of law. The paper concludes that while the two are not mutually exclusive, the access points between them appear to concentrate around issues relating to equity, the protection of “silent” interests and the importance of governance in facilitating feedback mechanisms.