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This paper analyses farmers' adoption of hard and soft technology in relation to irrigation technologies, production changes and water management changes in Alberta, Canada. Greater significance was found in modelling the adoption of hard technology (such as irrigation infrastructure technologies) than modelling the adoption of soft technology (water management or irrigation area changes). Overall, some of the most important influences include farm size, irrigation technology, off-farm income and being a member of an irrigation district. Few socio-economic variables were found to be important. Adoption of soft technology most likely leads to greater water efficiencies and in the future greater attention should be paid to a wider variety of factors and influences in order to model water management and trading behaviour.

Irrigation activity in Alberta accounts for 71% of consumptive use of surface water in the province. Pressures on water resources are acute and are expected to intensify. Alberta's answer to its water problems is contained in the Water for Life strategy which aims for a 30% increase in water use efficiency and productivity and the implementation of economic instruments if necessary. Irrigators' contribution towards this endeavour will be imperative. But the foundation of irrigation activity in Alberta is grounded in a private and irrigation district water management system that has resulted in the development of two very distinct irrigation groups. The differences in the production activity and water management practices between private and district irrigators are striking. This study attempts to identify these distinguishing characteristics relating specifically to the adoption of irrigation technology and management practices and ascertain the effect of economic instruments which Alberta, until recently, has largely avoided using.