Portugal and Spain on Monday reached an agreement over shared water resources on the Iberian peninsula, wrapping up a two-day summit that both premiers called historic.
``It is an ambitious, modern, wide-ranging and efficient agreement,'' Portugal's Prime Minister Antonio Guterres said at the end of the summit in Albufeira, about 200 kilometers (125 miles) south of Lisbon.
Both governments worked out a shared management plan to monitor water volume in the rivers which supply both countries.
Spanish Premier Jose Maria Aznar said the agreement reflected ``an exceptional moment'' of relations between the two Iberian countries.
Water supply on the southwest European peninsula was one of the few sticking points between the two countries, which have strong trade links and close political ties.
Spanish plans to develop hydroelectric projects on its side of the border have been a constant threat to Portugal's supply, which comes mainly from rivers with sources in the neighboring country.
Both governments also reiterated their decision jointly to campaign for continued development funds provided by wealthier European Union nations.
Cabinet Members also agreed to build new road and railway links between the two countries.
The Albufeira summit also produced a plan to increase cooperation between police at the border, in order to curb illegal immigration and drug trafficking.