flows, which affect baseflows. Consequently the interaction between surface and groundwater, and the potential of conjunctive operation, need to be carefully considered in the management of both systems. 8.1.4. Policy: Water resources allocation will be based on equitable and reasonable use through negotiations between watercourse States. The Revised Protocol on Shared Watercourses provides a framework for determining equitable allocation and reasonable use. It is based on weighting factors which take into account physical, social, economic and environmental characteristics of the shared watercourse including its physical characteristics, the socio-economic and environmental requirements of the Member States sharing the basin as well as potential development of the watercourse. 8.1.5. Policy: Member States will ensure that major water uses in the watercourses, particularly in shared watercourses will be regulated through authorisations such as a system of permits. Regulation of water use in the basin is important as it serves as the basis for planning and optimising the utilisation of water resources. For shared watercourses, appropriate regulatory mechanisms should be negotiated between the Member States, implemented in a transparent manner and in a spirit of fairness. A system of permits is necessary to ensure that allocations can be monitored and regulated. 8.2 Integrated Planning 8.2.1. Policy: Planning, development and management of water resources in the region should be based on the principles of IWRM and shall take full cognisance of the cross-cutting nature of water. Integrated planning is a fundamental requirement of IWRM. Noting that water is cross cutting in nature not only across political boundaries but across sectors as well, this imposes serious challenges and opportunities for cooperation between various sectors using water in their operations. This will entail both vertical (across different levels of society) and horizontal (across different sectors) integration in all relevant sector institutions in the region. The application of IWRM is more likely if the national water policies have adopted and incorporated IWRM principles. Therefore an important issue in harmonisation of national water policies is the adoption of IWRM at national level. 8.2.2. Policy: Watercourse States shall promote joint planning and implementation of water resources development within their shared watercourses and transparently notify and/ or engage other watercourse States, who are not proponents of the project, in a dialogue. - 38 -