Issue of sharing of waters of river Tungabhadra has its genesis in 1861 when Kurnool-Cuddapah Canal (KC Canal) was proposed by the then Government of Madras. Despite agreement on construction of KC Canal project, there was no general agreement on sharing of Tungabhadra waters between Government of Madras and Government of Mysore. In 1930, Government of Madras proposed a joint project on the Tungabhadra. Subsequently, a number of conferences between the Governments of Madras, Mysore, Hyderabad and Bombay took place, but all were inconclusive. In 1936, there was an agreement between Governments of Madras and Mysore, followed up by an  agreement between Governments of Madras and Hyderabad in 1938. However, due to some differences in interpretation of the agreement between Governments of Madras and Hyderabad no substantial progress was made in implementation of the project. It was in a conference between the Governments of Madras and Hyderabad  held on 26 June 1944, that a final decision was arrived at on the allocation of waters as well as on taking up the project jointly and sharing the cost equally between the two States.