Within the frontiers of Political Geography, the Locational Benefit Concept (LBC) which is emerging as a cause of disputes, can be converted into a conflict resolution measure as well. Due to the growing awareness of this concept, particularly, after the disintegration of erstwhile Soviet Union, which changed the nature of regional problems from domestic to international issues within Central Asian Republics (C.A.R.s), the Mountainous and Non-mountainous sub-regions have repulsed some ugly developments over resource-sharing, especially, in case of hydrocarbon and water resources. The Mountainous sub-region comprising Tajikistan and Kyrgyzstan, are water-rich states accounting almost 80 percent of the regional water resources, originating from glaciers mostly located in Tienshan and Pamir mountains as compared to three lower riparian states including Kazakhstan, Uzbekistan and Turkmenistan which are water-deficit but energy-rich states abounding in Hydrocarbons i.e. oil and gas. Although the spatial variation in resources is a natural phenomena, but the nature of resource distribution in the study region is so unequal that the two sub-regions cannot sustain, not to talk of their balanced and sustainable development without regional cooperation for developing a proper resource-sharing mechanism. This strong argument has led to some arbitrations, agreements etc. whereby, the lower riparians receive required water flow at the required times from upper riparians in exchange of Hydrocarbon supply on subsidized rates. But some of the agreements have failed, some are in pipeline and there always remains a threat of such agreements failing any time. So there is an urgent need of developing a proper resource-sharing mechanism between the two sub-regions in order to avoid the potential conflicts on resource-sharing as well as, simultaneously, to have a sustained development for both the sub-regions. The main aim of this paper, therefore, is to analyse the regional resource inequalities leading to high order interdependence in the study region, particularly, between the two sub-physical regions, which has led to almost a water war in the region and to explore the possibilities for converting this potential conflict into regional cooperation by way of devising a viable resource-sharing mechanism.