This paper presents an examination of water risks in rural communities within Nagaon district of Assam, India. It employs a participatory approach to integrate community perspectives into the assessment process. The objective is to engage local people, gain an understanding of water risks they encounter in their everyday lives, and incorporate their opinions and experiences. To achieve this objective, the present analyses employ mixed methods, including stakeholder interviews, focus group discussions, household surveys, and community forums. Additionally, the development of the Participatory Water Risk Index (PWRI) provides a novel metric for quantifying and prioritizing water risks, aligning with local priorities and perspectives. The findings highlight the identification and evaluation of seven key parameters of water risk which include availability and sufficiency of drinking water, water quality issues, prevalence of water-related diseases, irrigation facilities, vulnerability to floods, and utilization of public water infrastructure. The study underscores the importance of community involvement and empowerment in addressing water-related challenges and promoting resilience. Policy recommendations derived from the research emphasize the need for context-specific approaches to water resource management, recognizing the unique challenges and strengths of each community within the district. The transferability of the PWRI to other locations offers substantial opportunities for improving water security worldwide, contingent upon careful consideration of context-specific parameters and community engagement. Thus, this paper contributes to the advancement of sustainable water management practices by integrating local knowledge into the assessment process, guiding future interventions to build a water-secure future for rural communities in Nagaon district and beyond.