By Jonathan Kent BBC News, Kuala Lumpur

Malaysia and Singapore are threatening to go to court to settle a long running dispute about water which has soured relations between them.

The two South East Asian countries have been unable to agree on a price for supplies for which Singapore depends on Malaysia.

They have been trying for months to settle the price at which Malaysia supplies half Singapore's daily water needs.

The sticking point: Singapore wants to tie the matter to a raft of issues that have rankled between the two countries since they split apart in 1965. Malaysia does not.

Now the foreign ministers of both countries have signalled that the row could end up at the permanent court of arbitration in the Hague.

Recycling

The problem dates back to 1961.

Then Malaysia signed two agreements, one for 50 years, the other for 100, to supply the resource-poor island state with millions of gallons of water daily at less than 1 US cent per thousand gallons (4,500 litres).

Malaysia failed to have the price reviewed after 25 years, as allowed under the deal.

Singaporean Prime Minister Goh Chok Tong drinks chilled recycled waste water

Now Singapore says it's willing to raise the price but Malaysia wants the increase to be backdated more than 15 years.

One Singaporean response has been to recycle waste water and call it new water.

The two countries are also at loggerheads over a proposed new bridge between them, over the use of Malaysian air space by Singaporean aircraft, and also over Singapore's main railway line and station, both of which are owned by Malaysia.

Singapore's foreign minister says they should stop squabbling and concentrate on tackling the upsurge of militant violence in the region together.

Malaysia appears to be prepared to call in the lawyers.