The Centre on Monday night announced in the Lok Sabha the setting up of a Krishna Water Disputes Tribunal by August 31.
Karnataka and Andhra Pradesh are at loggerheads over the sharing of the river waters.
This will be the second tribunal on sharing of the Krishna waters; the earlier one was set up in 1969.
Replying to a discussion, Minister for Water Resources Arjun Charan Sethi said that the Centre had received requests from the three Krishna basin states -- Karnataka, Andhra Pradesh and Maharashtra -- to set up such a tribunal.
The tribunal will give its report within three years and if need be its term could be extended by another two years.
Sethi blamed the state governments for not sharing data concerning the river waters.
The minister said if there had been any error of judgement on the part of the Central Water Commission, the Centre was open to review the concerned projects.