With industrial development and economic growth, conflicts over use and allocation of water have been increasing. Though diverse efforts have been made toward resolving conflicts through computer-based models, its clear understanding is prerequisite for models to be effective. A systems view illuminates how people think and consequences of their thoughts and actions on results and thus helps to achieve sustainable solutions. This paper presents a systemic approach to assist stakeholders in two different jurisdictions in a hypothetical water resource system to resolve a potential water-sharing conflict. A causal loop diagram developed provides an understanding of the conflict dynamics and feedback nature. A system dynamics simulation model developed fitting the causal diagram offers a significant opportunity to explore conflict's behavior and resolution with respect to final water allocations and time necessary to reach an agreement. The impact of initial aspiration, influence on system and struggle of stakeholders is discussed in detail.