Surface and groundwater resources do not recognize political boundaries. Where nature and boundary cross, tension over shared water resources can erupt. Such tension is exacerbated in regions where demand approaches or exceeds sustainable supplies of water. Establishing equitable management strategies can help prevent and resolve conflict over shared water resources. This paper describes a methodology for addressing transboundary water issues predicated on the integration of monitoring and modeling within a framework of cooperation. Cooperative monitoring begins with agreement by international scientists and/or policy makers on transboundary monitoring goals and strategies; it leads to the process of obtaining and sharing agreed-upon information among parties with the purpose of providing verifiable and secure data. Cooperative modeling is the process by which the parties jointly interpret the data, forecast future events and trends, and quantify cause and effect relationships. Together, cooperative monitoring and modeling allow for the development and assessment of alternative management and remediation strategies that could form the basis of regional watershed agreements or treaties. An example of how this multifaceted approach might be used to manage a shared water resource is presented for the Kura River basin in the Caucasus.