Kerala and Tamil Nadu have agreed to review the Parambikulam Aliyar Project (PAP) pact.
A secretary-level committee with five members each from both sides to work out the details.
Additionally, a 10-member committee will look into Tamil Nadu's demand for diverting water from Anamalaiyar, which is linked to the Idamalayar project.
Kerala has also agreed to restore power supply to the Mullaperiyar dam, which is managed by Tamil Nadu.
About
The PAP treaty was inked on May 29, 1970, with retrospective effect from November 9, 1958.
Although it was to be reviewed after 30 years, in 1988, the two States could not reach a consensus despite several rounds of meetings.