The Indus Water Treaty (IWT) is a water-distribution treaty between India and Pakistan signed on September 19, 1960. The treaty was signed by the then Prime Minister Jawaharlal Nehru and Pakistan’s President Ayub Khan. It was brokered by the World Bank (International Bank for Reconstruction and Development).
According to treaty, all the water of eastern rivers( Sutlej, Beas, Ravi) shall be available for unrestricted use in India.
India should let unrestricted flow of water from western rivers( Jhelum, Chenab, Indus) to Pakistan.It doesn’t mean that India can’t use western river’s water. The treaty says that India can use the water in western rivers in “non-consumptive” needs. Here non consumptive means we can use it for irrigation, storage and even for electricity production. (But India has not fully utilized this provision so far).The treaty allocates 80% of water from the six-river Indus water system to Pakistan.
A Permanent Indus Commission was set up as a bilateral commission to implement and manage the Treaty.Though Indus originates from Tibet, China has been kept out of the Treaty.
