The Indus Waters Treaty (IWT) is a bilateral treaty between India and Pakistan, signed on September 19, 1960, to govern the use of the Indus River system waters. It originated from the water dispute that arose after the 1947 Partition, which left the headworks of canals supplying water to Pakistan in Indian territory. The treaty, brokered by the World Bank, solved this problem by dividing the six rivers of the Indus Basin.
The core mechanism of the treaty is the allocation of rivers: the three Eastern Rivers—the Ravi, Beas, and Sutlej—were allocated for the unrestricted use of India, while the three Western Rivers—the Indus, Jhelum, and Chenab—were allocated for the unrestricted use of Pakistan. India is permitted to use the Western Rivers for limited irrigation and unlimited non-consumptive uses like hydroelectric power generation, subject to specific design regulations detailed in the treaty's Annexures.
The treaty established the Permanent Indus Commission (PIC), a bilateral body with a Commissioner from each country, to oversee implementation, exchange data, and resolve "questions". The PIC is required to meet at least once a year. For unresolved technical "differences," the treaty provides for a Neutral Expert, and for broader "disputes," it mandates a Court of Arbitration.
The treaty has faced recent challenges. In April 2025, India declared that the treaty would be held "in abeyance" following a terror attack, citing Pakistan's alleged support for cross-border terrorism. However, the Court of Arbitration, in a decision on August 31, 2026, ruled that the treaty remains fully in force and that India's unilateral decision to place it in abeyance was not permissible under Article XII(4) of the IWT, which states the treaty can only be terminated by a duly ratified treaty between the two governments. India has rejected the jurisdiction and findings of the Court of Arbitration.