On January 15, 2005, Pakistan approached the World Bank asking the Bank to appoint a Neutral Expert to address a “difference” which had arisen with India under the Indus Waters Treaty. The difference related to the Baglihar hydropower plant which was under construction by India. The Bank appointed a Neutral Expert four months later, following lengthy exchanges with the two parties. On February 12, 2007, about 20 months after his appointment, the Neutral Expert issued his decision on the difference. This article reviews the main provisions of the Treaty, examines the process for the appointment and for the decision of the Neutral Expert, and analyzes the decision.

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