Sarda River forms part of the border between the nations of India and Nepal. It is called the Mahakali River in Nepal and Kali Gad by local pahari people . This boundary was established by the 1816 Sugauli treaty, but a portion of this border near China has been in dispute. After leaving the border, the river flows southeast across the Ganges basin until it merges into the Ghaghara River, an affluent of the Ganges. India has proposed building a dam across the Sarda in Nepalese territory, but this plan has proven controversial.