Salal Hydroelectric Project is built on river Chenab near Reasi in Udhampur district of Jammu &Kashmir in India. Although the plan for a water reservoir was originally conceived in pre independent India, the planning of the project started in 1960s. The actual construction of the dam started in 1970s. The design of the project laid out a two-stage powerhouse with a total installed capacity of 690 MW (345 MW each)  Salal dam is considered important for Punjab province of both India and Pakistan for agricultural purpose. India’s plan to construct a dam on Chenab River was first objected by Pakistan in 1974. Pakistan argued that the construction of the dam did not follow the Indus Water Treaty signed between India and Pakistan in 1960 . Under the terms and conditions of the Treaty, India submitted its plan to the ‘Permanent Indus Commission’ for approval in 1968. However, looking at the Pakistan’s objection, India agreed to make some changes in the design of the dam. India lowered the height of the dam that was originally proposed and also close the diversion canal permanently. This conflict was amicably settled after the signing of Indus Waters Treaty. The resolution of this dispute was welcomed by both the countries and is considered as successful diplomacy over water sharing between Pakistan and India [2, 3].