The paper analyses the process of decentralization of water management to catchment and subcatchment councils in the Save catchment area in general and Odzi subcatchment area in particular. The paper explores the different challenges encountered by these stakeholder institutions in water management. The empowerment approach is used to examine the extent to which the formation of these new water institutions is enhancing the empowerment of different stakeholders in the management of water resources. The paper concludes that effective stakeholder participation is being hampered by lack proper representation of stakeholders on catchment and subcatchment councils; lack of stakeholder involvement in catchment planning; inadequate financial resources for catchment and subcatchment councils for use in water management and the government's unwillingness to stop land invasions by the ruling party supporters. The data presented in this paper was collected through unstructured interviews, attendance of catchment and subcatchment councils meetings and reviewing of recorded minutes of the Save Catchment and Odzi Subcatchment Councils meetings. Keywords: Decentralization, Stakeholders, Institutions, Empowerment.