To enhance transboundary water management and cooperation in the Volta River Basin, the Project for Improvement of Water Governance in the Volta Basin (PAGEV) program established the code of conduct between Burkina Faso and Ghana with support from partner organisations. However, regular flood risk in the Basin remains unresolved. This paper assesses the level of awareness of riparian communities about the Volta Basin Authority (VBA) and the code of conduct. It also attempts to understand the extent to which local people perceive water governance challenges in the Basin. We used a questionnaire survey to understand these. Our results show that 84% and 91% of the respondents in Burkina Faso and Ghana did not have knowledge about the VBA. Only 11% of the respondents in Ghana were aware of the code of conduct. The respondents in both countries identified Bagre Dam water spillage, flood protection, environmental regulation enforcement and community participation as their major challenges in the sustainable management of basin water resource. Chi-squared analysis reveals that our respondents’ awareness was significantly correlated to their education, gender and years of residency along with location. This paper then highlights water governance challenges to be solved in the future in the Basin by better incorporating local needs.