Egypt and Ethiopia are looking to put past disputes over the use of the water from the River Nile behind them.
Meles Zenawi, the Ethiopian prime minister, has visited Cairo for the first time and together with his Egyptian counterpart, Essam Sharaf, has agreed to set up a team of experts to review Ethiopia's controversial dam project.
But with upstream countries in desperate need of energy, we ask: How long can these new deals last? And who is set to benefit the most?
Simply put, with 160 million people living along its banks is there enough water in the Nile for everyone?
Inside Story, with presenter Darren Jordan, discusses with Dia El-Din Ahmed El-Quosy, an Egypt-based water expert; and Adel Darwish, the author of Water Wars.