It is fed from the Sutlej River near Firozpur, Punjab, close to the India–Pakistan border, and passes through the Faridkot, Fazilka and Muktsar districts.

Standley, chief engineer, who demonstrated the feasibility of the western area of the Bikaner State being brought under irrigation from the Satluj Waters.

The plan of the Satluj Valley Project was drawn by then chief engineer of Punjab Mr. R. G. Kennedy, according to which the vast area of erstwhile Bikaner state could be brought under irrigation.

Because of objections by the erstwhile Muslim State of Bahawalpur, the project got delayed and finally with intervention of then viceroy of India, Lord Curzon, in 1906, a tripartite conference was held and an agreement was signed on 4 September 1920.

Jawaharlal Nehru also wrote to the Viceroy stating that it would be "most dangerous" for the Ferozpur district to go to Pakistan for "strategic and irrigation reasons".