Water: The two countries disagree over use of the water flowing down rivers which rise in Indian Kashmir and run into the Indus river basin in Pakistan. The use of the water is governed by the 1960 Indus Water Treaty under which India was granted the use of water from three eastern rivers, and Pakistan the use of three western rivers. Pakistan says India is unfairly diverting its waters with the upstream construction of barrages and dams. India denies any unfair diversion of Pakistani water. __