Since the Washington peace settlement mediated by the US in 1998, the KDP and the PUK have sustained a durable peace for over a quarter-century, despite persistent political rivalries. This prompts a critical question: why has this peace endured, and why has civil war not recurred between the two factions? This chapter argues that the durability of the settlement is primarily rooted in the sharing and division of power across four key dimensions of state power: political, military, territorial, and economic. The chapter traces the evolution of the KDP-PUK power-sharing arrangement through three distinct phases: the transition stage (1998–2006), the “golden” period (2006–2013), and the weakening stage (2013–2023).