Turns on mouse scrolling and interaction using iterm2 (and others).

gistfile1.txt

;; turn on mouse wheel scrolling
  (defun sd-mousewheel-scroll-up (event)
    "Scroll window under mouse up by five lines."
    (interactive "e")
    (let ((current-window (selected-window)))
      (unwind-protect
          (progn 
            (select-window (posn-window (event-start event)))
            (scroll-up 2))
        (select-window current-window))))
  (defun sd-mousewheel-scroll-down (event)
    "Scroll window under mouse down by five lines."
    (interactive "e")
    (let ((current-window (selected-window)))
      (unwind-protect
          (progn 
            (select-window (posn-window (event-start event)))
            (scroll-down 2))
        (select-window current-window))))
 
  (global-set-key (kbd "<mouse-5>") 'sd-mousewheel-scroll-up)
  (global-set-key (kbd "<mouse-4>") 'sd-mousewheel-scroll-down)

(xterm-mouse-mode)