Entry 17 under List II of Seventh Schedule provides that "Water, that is to say, water supplies, irrigation and canals, drainage and embankments, water storage and water power subject to the provisions of Entry 56 of List I".

As such, the Central Government is conferred with powers to regulate and develop inter-State rivers under Entry 56 of List I of Seventh Schedule to the extent declared by the Parliament by law to be expedient in the public interest.

It also has the power to make laws for the adjudication of any dispute relating to waters of Inter-State River or river valley under Article 262 of the Constitution.