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This edited volume focuses on recent methodological advanced within the field of water resource economics and shows how these advances can be applied to the economics of water issues. It identifies five areas of particular importance -- asymmetric information and game theory, uncertainty, space, water quality, and production and technology adoption. Individual chapters address issues such as allocation of water and water as a pubic good; the influence of weather variability, network failures, and input price risk; the impact of heterogeneity of the land on water use efficiency; quality of water and pollution, and the potential substitutions between capital and water via new technologies.