This appears to be escalating.
From The Nation (Pk):
Beckoning war on water
India’s feverish pursuit of building dams on the rivers allocated to Pakistan under the Indus Waters Treaty (IWT) has received the attention of the International Crisis Group (ICG) whose objective is to evaluate the consequences of a developing situation for peace in the world and give early warnings of eruption of conflicts unless they are resolved well in time. The ICG rightly foresees the outbreak of war between the two countries if India resorts to stopping water from flowing into Pakistan, which according the IWT is its share, and that creates a dangerous situation for Pakistan. The ICG also draws attention to a report of last year released by the Foreign Relations Committee of the US Congress wherein it was stated that New Delhi was building three dams on Chenab and Sutlej. By virtue of these dams, the reports said, India would come into a position to divert water way from Pakistan right at the time it badly needed it for the crops, thus putting a question mark on the relevance of the IWT.May 11
The ICG’s foreboding or the US Congress’s apprehensions are not something that should come as a surprise to experts in the field or even the general public in Pakistan who are aware of the fact that the headwaters of these rivers fall in the Indian occupied part of the disputed state of Kashmir and are also familiar with the Indian designs against the existence of Pakistan....MORE
Indian water terrorism
As a result of what can be best termed as ‘Indian water terrorism’ another important river Ravi has gone dry. Taking undue advantage of Indus Waters Treaty and by building small and big dams on rivers flowing into Pakistan, India seems to be bent upon making Pakistan a desert land....MOREIf you've seen the Wagah border crossing flag lowering ceremony you think "And these guys have nukes!?".