Results indicate that drought conditions play a varying role in the market price of water in each of these three markets. The Arizona Type II results show that under wetter conditions, the price of water is lower, holding all other factors constant. Type II water rights in Tucson and Prescott will cost more than Type II water rights in Phoenix. In addition to the connection between drought and higher prices, results for the Arizona CAP and Colorado Big Thompson markets indicate that water rights purchased for agricultural, industrial, or environmental purposes are less expensive than water rights purchased for municipal use. To put it simply, when drought conditions intensify, the price of water is likely to increase—especially for cities.