Adoption of California’s Sustainable Groundwater Management Act (SGMA) in 2014 posed a major coordination challenge for diverse public agencies by requiring them to align their activities at the scale of groundwater basins, which is not how most governing bodies are organized. Meeting this requirement meant establishing governing and operating relationships between agencies. Such interorganizational relationships (IORs) are essential in many fields, but are also prone to conflict. Understanding the factors affecting the inclusion, specificity and salience of dispute resolution clauses (DRCs) in interorganizational agreements ensures the long-term functionality of IORs. We examined 74 multi-entity agreements forming new quasi-voluntary local agencies, devoted to developing and implementing groundwater sustainability plans to achieve groundwater sustainability under SGMA.