♤ The treaty states that except in certain cases, no storage and irrigation systems can be built by India on the western rivers.

♤ India is permitted to construct hydroelectric power facilities on these rivers subject to constraints specified in Annexures to the Treaty.

Working of the treaty:

♤ Treaty sets out a mechanism for cooperation and information exchange between the two countries regarding their use of the rivers, known as the Permanent Indus Commission, which has a commissioner from each country.

♤ The Treaty also sets forth distinct procedures to handle issues which may arise:

o “questions” are handled by the Commission;

o “differences” are to be resolved by a Neutral Expert; and

o “disputes” are to be referred to a seven-member arbitral tribunal called the “Court of Arbitration.”