Bjornlund, HenningRossini, Peter2026-06-112026-06-110790-0627ORCID:/0000-0003-3341-5635/work/217155837https://hdl.handle.net/1885/733810889This paper analyses prices paid and volumes traded in the market for water allocations to provide insight into which factors drive activities in that market. While factors such as commodity prices, supply and demand as well as macroeconomic indicators have had an influence on price and volume traded, the main determinants during the study period have been the level of seasonal allocation, rainfall and evaporation. During this period of relative water scarcity, irrigators with water-dependent capital assets such as dairy and horticultural farmers have been willing to pay increasing water prices relative to commodity prices in order to protect these long-term investments and stay in business.Research was funded by the Australian Research Council and five industry partners: the Department of Water Land and Biodiversity Conservation in South Australia, Goulburn–Murray Water, the Department of Sustainability and Environment in Victoria, the Department of Infrastructure, Planning and Natural Resources in NSW, the Murray Darling Basin Commission and UPmarket Software Services.15en200510.1080/0790062050003646321544462849