In earlier times, water was used as a tool of military conflict. Today however, there has been a structural change and now wars could be fought over water. The existing supply of water cannot keep up with demand and at the current rate any weak monsoon period could lead to the onset of a drought period in South and East Asia. While the potential for war breaking out due to a lack of water is low in the next ten years, water challenges due to increased instability will exacerbate tensions. This paper examines China’s transboundary water policies, its relations with India, Kazakhstan and the countries forming the Mekong River basin as well as future policy implications to analyse the possibility of a water war in the area encompassing Cambodia, China, India, Kazakhstan, Laos, Myanmar, Thailand and Vietnam.