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This paper thrashes out the water issues between Pakistan and India and the recent developments that have taken place specifically in the year 2011. The disputes of building dams on cross – boundary rivers like the construction of Kishanganga Hydro – Electricity Project by India, Pakistan’s objections to the project, decision of the International Court of Arbitration, Indian response, confidence building measures and the role of media have been analysed. The study identifies India’s various unfair dealings with Pakistan in watersharing. The water issues will attain significance greater than the Kashmir issue. Solving the Kashmir issue will lead towards solving the water issues.