Groundwater markets have emerged as an important rural institution in the GMB basin. This article reviews 13 papers (from 1974 to 2003) on groundwater markets in the region. First, various aspects of this market such as its evolution, spread, mode of functioning and impact are analysed. On the basis of these studies, it is concluded that groundwater markets have a beneficial impact in regions of abundant recharge, such as the GMB basin. Next, two broad strands of methodology used in groundwater market study are compared. Finally, the research gap in the way these markets have been studied are identified.