In most urban cities across Australia, water restrictions remain the dominant policy mechanism to restrict urban water consumption. The extensive adoption of water restrictions over several years means that Australian urban water prices have consistently not reflected the opportunity cost of...

In this paper we reflect on the challenge of reallocating water resources from agricultural interests to environmental uses. The area of interest is the Murray–Darling Basin, Australia, although the evidence presented provides salient lessons for a range of settings. We draw on the transaction...