This paper considers the multi-faceted lessons of the Lesotho Highlands Water Project and how the project can serve as a model of mutually beneficial development, though demonstrating the benefits of a bilateral governmental cooperative approach in the development of an international river. These benefits include exceeding the impact of individual national approaches and strengthening political cooperation among all participants. This model is particularly relevant since approximately 40 percent of the world's population lives in transboundary river basins and more than 90 percent of the world's population lives within countries that share these basins.