At present, it is urgent to solve problems of reforming and improving grass-roots water conservancy management mode in rural areas and improving rural water conservancy public service ability. Through analyzing institutional changes of grass-roots water conservancy management in rural areas, this paper discussed current situations and outstanding problems in grass-roots water conservancy services in rural areas of Kunming City. On the basis of current situations and problems, it came up with policy recommendations from reform of management institutions, reform of personnel system, construction of human resources, development of rural water use cooperation organizations, and improvement of fund input mechanism, to build rural grass-roots water conservancy service system.