The Indus River System is a vital source of water for millions of people in India and Pakistan. It's a network of six major rivers that provide drinking water, irrigation, and hydroelectric power. When India and Pakistan were formed in 1947, the system was divided between the two countries.

India, being the upper riparian state, controlled the headwaters of most rivers, while Pakistan's agricultural heartland, the Punjab plains, relied heavily on water from the east. Both countries needed access to the system for their development objectives.

In 1960, India and Pakistan signed the Indus Water Treaty, facilitated by the World Bank. This treaty was a concessionary agreement that favored Pakistan, despite India's pressing domestic needs. India had to give up its claim to the Western rivers, which carried 80% of the system's water, in exchange for formal acknowledgment of flows in the Eastern rivers.

The treaty imposed significant restrictions on India's use of the Western rivers, while Pakistan was free to develop new uses without equivalent constraints. India had to pay around £62 million (approximately $2.5 billion in present value) as compensation to Pakistan to build water resources infrastructure in Pakistan-occupied Kashmir. This payment was a unique precedent where the upstream country paid the downstream country for the "privilege" of giving away water.

The treaty's structural unfairness lies in the unilateral asymmetric restrictions on India. India had to comply with specific design and operational restrictions on its use of the Western rivers, while Pakistan had no corresponding obligations. This has created a power imbalance that has been detrimental to India's interests.

The Indus Water Treaty has been a contentious issue between India and Pakistan for decades. Understanding its history and the concessions made by India is essential to grasping the complexities of this treaty.