The Interstate Agreement refers to a formal arrangement between two or more states to cooperate on specific issues, such as resource sharing, transportation, or law enforcement. These agreements help streamline processes and ensure that states can work together effectively, often addressing challenges that cross state lines. One common example of an Interstate Agreement is the Interstate Compact, which allows states to collaborate on matters like environmental protection or managing shared natural resources. Such compacts are legally binding and require approval from the U.S. Congress to ensure they comply with federal laws.