This article suggests that the concepts underlying participatory approaches to development should be subject to greater critical analysis. Drawing on research on water resource management in sub-Saharan Africa, and on social theory concerning the recursive relationship between agency and structure, it illustrates the need for a more complex understanding of issues of efficiency and empowerment in participatory approaches. Particularly, two key concepts are examined: ideas about the nature and role of institutions; and models of individual action. The article concludes by identifying the questions such an analysis raises about the relationships between community, social capital and the state.