The study argues that the Kashmir dispute between India and Pakistan is neither an emotional issue nor purely an ideological tangle but equally, if not more so, an issue of realpolitik which is inherent in the nature of the territory of Kashmir. This dimension of the Kashmir dispute was overshadowed in the wake of the Indian move to raise the Kashmir issue at the UNSC in 1948. The importance of the territory lies in its wealth of water resources of the world''s mighty Indus River System comprising the Indus, Jhelum, Chenab, Ravi, Beas and Sutlej rivers, serving as the ‘jugular vein'' of Pakistan''s agrarian economy. India is not prepared to lose the upper- riparian status and Pakistan is fearful of its vulnerabilities. Kashmir issue is also a question of control of the life-giving rivers in upstream originating from the territory of Kashmir, parts of which were captured by both India and Pakistan in 1948. The study highlights the linkage of the Indus rivers resource with political thinking, strategic planning and warfare between India and Pakistan in the past and comprehends its future role in the security calculus of the region.