Police said they raised slogans against the Tamil Nadu government for remaining mute spectator on the issue and Kerala for constructing the dam, thus depriving water to Tamil Nadu.
The protesters, led by DMK MLA, N Karthik, leaders of Congress, MDMK, Viduthalai Chiruthaigal Katchi (VCK) and Thanthai Periyar Dravida Kazhagam (TPDK), staged the demonstration at Anaikatti.
Police prevented them from crossing over to the neighbouring state.
Karthik said the parties will decide their future course of action on the issue, including demonstrations on a large-scale against Kerala.
District Congress president Mayura Jayakumar, TPDK general secretary K Ramakrishnan, VCK zonal convenor Susi Kalaiyarasan were among those arrested, police said.
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