This article examines the relationship between water rights priority and the value of use for rights defined by prior appropriation, and tests whether this relationship is different for rights that have been transferred from their original locations to new locations, versus those that have not. We develop an empirical model using data for agricultural irrigation water rights and show that for transferred water rights, more senior (higher-priority) rights are reallocated from lower to higher-valued agricultural uses. For water rights that remained unchanged, we found that priority order and potential profitability, as indicated by land characteristics, are not well aligned.