If it appears to the Government of any State that a water dispute with the Government of another State has arisen or is likely to arise by reason of the fact that the interests of the State, or of any of the inhabitants thereof, in the waters of an inter-State river or river valley have been, or are likely to be, affected prejudicially it can request the Central Government under Section 3 of the Act to refer the water dispute to a Tribunal for adjudication.

The act clearly lays down the details regarding the following:

• Constitution of the tribunal,
• Timeframe within which it has to be constituted,
• Adjudication of water disputes,
• Filling of vacancies,
• Publication of decision of tribunal,
• Power to make schemes for implementing decisions of tribunal,
• Prohibition of levy of seigniorage, etc.,
• Bar of reference of certain disputes to tribunal,
• Powers of tribunal,
• Maintenance of data bank and information,
• Bar of jurisdiction of Supreme Court and other Courts,
• Dissolution of Tribunal and power to make rules.

The act has been amended in 2002 to make sure that the Tribunal shall investigate the matters referred to it and forward to the Central Government a report setting out the facts as found by it and giving its decision on the matters referred to it within a period of three years, provided that if the decision cannot be given for unavoidable reasons, within a period of three years, the Central Government may extend the period for a further period not exceeding two years.

Apart from this, a new section 9A has been inserted in the section on maintenance of data bank and information. The Central Government is now required to maintain a data bank and information system at the national level for each river basin which shall include data regarding water resources, land, agriculture, and matters relating thereto, as it may prescribe from time to time.

The State Government shall supply the data to the Central Government or to an agency appointed by the Central Government for the purpose, as and when required. The Central Government shall have powers to verify the data supplied by the State Government, and appoint any person or persons for the purpose and take such measures as it may consider necessary. 

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