objectives: 1. Document current knowledge on the water use efficiency of Australian cotton and comment on potential for improvement. 2. Compare Australian cotton with other irrigated crops in Australia and cotton in other countries and determine the comparative economic efficiency. 3. Determine overall water use of cotton in Australia and relate it to its economic efficiency. 4. Calculate the efficiency of use of other assets in the Australian cotton industry. 5. if possible, estimate the spin-off effects of water research and development in the Australian cotton industry on other irrigation industries in Australia. 6. Prepare an economic analysis which shows the actual cost of water to cotton producers.