Conflict arises over shared resources when resource owners have individual strategy rather than collaboration. Teesta river basin shared by India and Bangladesh is known for its lack of an agreement between these two countries over sharing its waters. Such situation is creating distress and misunderstandings between these two countries. In this paper we have used a system analysis technique including linear programming and game theory by considering a rational plan which includes water storage, power production, irrigation and salinity control. Moreover using game theory we have investigated a range of strategies which will result in significant benefits for each country.