Because of its proximity to two major sources of water, Diyala's main industry is agriculture, primarily dates grown in large groves.

[11] On May 11, 2007, Army Maj. Gen. Benjamin Mixon, commander of the Multi-National Division North said he needed more troops in order to contain the current level of violence in the Diyala province, this coming in the recent wake of a troop "surge", involuntary recalls by the U.S. military, and the public debate about the level of commitment from the U.S.

In June 2007, US forces launched Operation Arrowhead Ripper with night air assaults in Baqubah.

[citation needed] Fighting continued in the Diyala River valley but by the beginning of October, US and Iraqi forces held most of the province while the insurgents were in retreat to the north and west.

[citation needed] In January 2008 Operation Phantom Phoenix was launched in an attempt to eradicate the remaining insurgents following the Diyala campaign between 2006 and 2007.

The council in Diyala, using Article 119 of the Iraqi Constitution as justification, made the declaration because of suspicion of the Shi'a-dominated government of Prime Minister Nouri al-Maliki.