India and Nepal share numerous rivers—large and small. The larger rivers—Kosi, Gandak and Mahakali—are governed through bilateral river agreements between the countries. However, there are a plethora of small rivers, streams, and rivulets which are not governed by any agreement. These rivers form the backbone of the local economies at the border. Pandai is one such river, which crosses the India-Nepal border at Bhikhna Thori, Paschim Champaran, Bihar. The river is, both, the major source of water to the people of Bhikhna Thori, and of their woes through flooding and erosion. While the water of the river has been shared through a traditional arrangement between the border communities, changing demographics at the border and associated development activities has led to a breakdown of the arrangement, provoking conflicting riparian right claims between the communities. Drawing from the review of literature on international water law, this chapter discusses the Pandai as a case study to explore possibilities for a better transboundary water governance framework between India and Nepal.