[1] The main water source for the King Abdullah Canal (KAC) is the Yarmouk River and the Al-Mukhaibeh wells within the Yarmouk valley: farther south, additional water flows from Wadi el-Arab and from the Zarqa River, and its reservoir behind King Talal Dam.
As a result of the 1994 Israel–Jordan peace treaty, some Yarmouk River water is also stored seasonally in Lake Tiberias, being conveyed through a pipe.
The United States, through United States Agency for International Development (USAID) provided financing for the initial phase of project, after obtaining explicit assurances from the Jordanian government that Jordan would not withdraw more water from the Yarmouk than the amount allocated to it according to the Johnston Plan.
Israel responded with raids in Jordan, in an attempt to force king Hussein to rein in the PLO.
The United States intervened to resolve the conflict, and the canal was repaired after Hussein undertook to stop PLO activity in the area.