The decision was taken at a meeting between visiting Karnataka Chief Minister BS Yediyurappa and Maharashtra CM Devendra Fadnavis here on Tuesday.
"It was decided to set up a high level committee for better dam management to avoid flood situation," Fadnavis said after the meeting.
At the height of the floods in Maharashtra, the coordinated release of excess water from the Almatti Dam was an issue during the devastation last month.
All political parties including the ruling BJP's ally Shiv Sena and Opposition Congress and NCP had blamed the Karnataka government for compounding the flood situation in Sangli, Kolhapur and Satara.
Till date, over 100 persons have died in the floods in the two states.
The Karnataka and Maharashtra governments will also jointly oppose Andhra Pradesh's application seeking redistribution of water against the Krishna Water Tribunal order in view of Andhra Pradesh and Telangana division.
Both the CMs took a firm stand that Andhra Pradesh and Telangana should take water from their allotted quota only.
Earlier, Yediyurappa and Fadnavis had a luncheon meeting at the latter's official residence 'Varsha' at Malabar Hill here.
At the meeting, CM Yediyurappa was accompanied by his Deputy Chief Minister CNA Ashwathnarayan and Home Minister Basavaraj Bommai while Maharashtra Water Resources Minister Girish Mahajan and Power Minister Chandrashekhar Bawankule were also present.
( With inputs from IANS )