Abstract: Little attention has been devoted to the water projects instituted to store and divert Indus water in the upper Indus basin which are causing water shortage in Sindh province of Pakistan. The water shortage further results in economic, social and ecological problems which became a source of conflict between provinces of the country. The study emphasizes on the mismanagement and flawed water distribution policies which are germinating inter-provincial social-conflicts. The study is in descriptive in parts where researchers tried to evaluate shortage of water in Sindh province with respect to planning, storage and distribution of Indus water and their impacts on the economic, social and environmental life of the province. Then researchers evaluate the impacts of water conflicts, especially in downstream riparian where Indus delta is moving towards an ecological disaster and famine like situation. Finally researchers recommend resolution measures. Therefore, the attention to such conflicts, their resolution and prevention is an important area for research and policy development.