No, it is just not the water alone. Kashmir is also strategic from the military point of view. You have the Siachen Glacier located in Kashmir which lies about 6000 meters above sea level. It is currently the world's highest battleground. The armies of both India and Pakistan face each other even today where temperatures during winter could reach minus 30 degrees and wind speeds around 100 kms per hour. The pilots stretch their helicopters to the limit to drop supplies there which takes place only during a very short summer period. But even with these harsh conditions, the armies of both the sides are not willing to budge an inch. The problem of Kashmir will linger on and with rounds of talks taking place month after month, year after year, yielding zero results.