This report examines changes in the Victorian Murray Valley that could be attributed to water trading. It considers the patterns of water trade and the views of irrigators and community members in three case study regions. In an effort to distinguish these changes from rural change that would in any case have occurred, the report also considers the factors that motivate decisions about trading water. The report is for people who want to understand how water trading is changing irrigation industries and communities. For policy makers and others with a broad interest, Part One bases its findings on observations in three of the most important water trading regions in the southern Murray-Darling Basin. For those interested in particular regions, each of these regional experiences is described in the case studies that form Part Two of the report.