As part of water management reform, water markets and the role of water authorities are evolving in Australia as in other parts of the world. This article gives some insight into the social and cultural issues as yet largely unaddressed in water policy reform. The article explores farmers' resistance to trade, farmer and community attitudes concerning who should be allowed to trade, the role of the water authority in the marketplace, what role farmers see themselves and others playing in water markets, and perceived blockages to trade in the Goulburn-Broken catchment of Victoria. The findings of the article suggest that optimal market-based redistribution of water may not occur unless the social and cultural attitudes to trade are duly considered.