The paper provides an integrated water markets framework (IWMF) to assess water markets in terms of their institutional foundations, economic efficiency, and environmental sustainability. The framework can be applied to: (1) benchmark different water markets; (2) track performance over time; and (3) identify ways in which water markets might be adjusted by informed policy makers to achieve desired goals. The IWMF is used to identify strengths and limitations of water markets in: (1) Australia's Murray-Darling Basin; (2) Chile (in particular the Limarí Valley); (3) China (in particular, the North); (4) South Africa; and (5) the western United States. The framework helps identify what water markets are currently able to contribute to integrated water resource management, what criteria underpin these markets, and which components of their performance may require further development. These findings for each market and comparisons between them provide general insights about water markets and improve water governance.

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