This study is one of a series of research papers completed as part of the Water Program for the National Round Table on the Environment and the Economy (NRTEE) exploring the sustainable use of water in the natural resource sectors in Canada. A policy analysis framework is used to analyse water management policy instruments and their ability to sustainability manage water use in Canada’s natural resource sectors. The focus of the analysis is largely on market-based or economic instruments (EIs), with some attention given to command and control regulations and voluntary initiatives.