The purposes of this study are to determine marginal value of irrigation water, estimation of price elasticity of water demand and distinguish different method of water pricing. Then, the required data were obtained from 127 farmers which were selected from 24 villages of Fars Province by sampling method. Results showed that:One percent increasing in water price in 1-5 region for group of farmers who own less than 10 hectares (owning hectares<10), decreases the water demand 0.51 , 0.77, 0.97, 0.61 and 0.72 percent, respectively. For the farmers groups who own more than 10 hectares (owning hectares>10), increasing one percent in water price in 1-5 region, decreases the water demand 0.9, 0.48, 0.56, 0.62 and 0.66 percent. Water price had significant effects on water demand in all regions and estimated more than %89.For the farmer group owning more than10 hectares in the first regions, increasing one m3 of extra applied water in summer and autumn season, increased farmers’ income between116 and 505 IR.Rial respectively, and in that irrigation season applying water was limited. For the farmers group owning less than10 hectares, marginal value of irrigation water for 1-5 regions estimated 65 , 148 , 190, 230 and 102 IR.Rial and for the farmer groups owning more than10 hectares, marginal value of irrigation water for 1-5 regions estimated 208, 113, 77, 69 and 120 IR.Rrial. Thus, government could present non-price policies (encouragement of water carriers, presenting related information, water pricing) in order to decrease water pollution.