Police personnel were deployed in large numbers at Shambu toll barrier and Sarala headworks at the border with Haryana.
The barricading at Shambu toll barrier is just 2 km from the new vegetable market in Ambala where the INLD is scheduled to hold "Jal Yudh Sammelan" before their senior leader Abhay Singh Chautala lead a march towards Kapuri in Patiala to dig the SYL canal.
Ten companies of paramilitary forces and nearly 5,000 policemen have been deployed by Punjab near villages along the border with Haryana, officials said.
With the police of the two states working in tandem to tackle the situation, the roads have been barricaded and walls raised at the Shambhu border.
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Section 144 of CrPC, prohibiting the assembly of five or more persons, has also been imposed and five duty magistrates have been stationed in the area.
A senior Punjab Police official said aerial surveillance will also be conducted to keep an eye on the situation.
Punjab DGP (Law and Order) H S Dhillon said no one will be allowed to disturb the peace and take the law into their own hands.
Police personnel, drawn from neighbouring districts, 10 companies of paramilitary, riot police and a mounted battalion, were deployed along the Shambu border, about 30 km from here.
Haryana DGP K P Singh, ADGP R C Mishra and senior administration and police officers visited the Punjab-Haryana border to take stock of the situation.
Punjab DGP Suresh Arora had earlier visited Shambu village and had assessed the situation ahead of INLD's march.
INLD's senior leader Abhay Chautala has vowed to "fight
for their right as the Supreme Court has given its verdict on the water issue in Haryana's favour".
Punjab Chief Minister Parkash Singh Badal has time and again said the state "does not have a single drop of water to spare" for any other state as its farmers are facing an acute water shortage.
Punjab Congress chief Capt Amarinder Singh said he had been warning that the SYL issue has the potential to trigger the revival of terrorism in Punjab.
Former Haryana Chief Minister Bhupinder Singh Hooda said if the INLD is serious about helping Haryana get it share of water, it should support the Congress and put pressure on the Centre to get the canal completed at the earliest.