The meeting assumed significance in view of the upcoming meeting of the two states convened by the Union Ministry of Home Affairs on August 8 to resolve contentious issues.
The two Chief Ministers were also understood to have discussed the progress made on the decisions taken during their first meeting on June 28.
The issue of diversion of Godavari river water to Krishna river is believed to have figured prominently during the discussion.
The June 28 meeting, first full-fledged talks between the two states since Jagan Mohan Reddy assumed charge, had decided to amicably resolve all their water sharing disputes. It was also decided to divert water from Godavari river to Krishna river to tide over the water scarcity in parts of both the Telugu states.
Jagan Reddy and Chandrashekar Rao reviewed the progress on the issue with the engineers' panels constituted by both the states submitting their proposals.
The upcoming August 8 meting is the first convened by the Centre after Jagan Reddy assumed charge in Andhra Pradesh.
Before meeting Chandrashekar Rao, Jagan Reddy also called on Telangana Governor E.S.L. Narasimhan at Raj Bhavan.
As Governor of both the states, Narasimhan had played the role of a facilitator in the talks during last five years.
The Centre recently appointed a full-time Governor for Andhra Pradesh.
( With inputs from IANS )