A better understanding of trade behaviour, especially strategic trade issues that can lead to market failures, will improve the economic advantages of water trade. There remains community concerns about the impacts of transfers away from regional areas such as reduced community spending and reinvestment; population losses; loss of jobs; declining taxation base, loss of local services and businesses, regional production changes; and legacy issues for remaining farmers. However, it is hard to disentangle these impacts from those caused by ongoing structural change in agriculture. Rural communities that are most vulnerable to water scarcity under climate change and water trade adjustment include smaller irrigation-dependent towns. Communities less dependent on irrigation are better able to adapt. Further, where environmental managers use water markets to deal with water variability and to ensure ecological benefits, irrigators are concerned about its impact on their traditional use of markets to manage scarcity.