This study uses an Integrated Agent-Centered (IAC) framework to investigate the socio-psychological drivers of Iranian farmers’ unsustainable groundwater management practices. Empirical land use change analysis of US Geological Survey Landsat satellite images of the Jaz-Murian wetland region for 1990, 2010, and 2022, is combined with community surveys conducted with randomly selected farmers in five townships within the region (n = 356). Visual analysis reveals dramatic increases in agricultural land coverage, diminished water bodies, and increased salt lands over the 32-year sampled period. We use survey data to explain the socio-psychological drivers of unsustainable groundwater use that lead to these adverse environmental changes. In the IAC survey analysis, we find that variables for “expectation” and “subjective culture” have a negative influence on pro-environmental “intention”. “Intention” and “habit” have a positive influence and “contextual factors” have a negative influence on the drivers of “unsustainable water use behavior”. We conclude that situational influences, habitual process, intentional process, and normative processes must be considered together to alleviate pressure on wetland ecosystems. Policy makers must provide effective agricultural extension training, deliberative dialogue amongst farmer networks, well-governed local water markets and financial support to shift farmer short-termist economic gain-thinking towards socially-supported pro-environmental habits over the longer term.