Arid and desert lands in terms of specific environmental characteristics such as low annual precipitation,
sequential droughts, huge drop in ground water levels or the like, have always faced strict limitations in water
resources. In the shadow of these characteristics and many other factors, Water Price Index (WPI) is significantly
affected. This study set out with the aim of identifying and determining the priority of factors influencing
Agricultural Water Price Index (AWPI) in arid and desert lands from farmers' point of view. The Charkhab village in
Yazd province was selected for this study. Detailed field surveys using structured questionnaires were considered
with the statistical society comprising the whole of the farmers of the village. The identification of the influential
factors is done by means of reviewing the literatures and eliciting experts' opinions. We implicated the factor
reduction and analyzing frequency distribution and CV correlation methods. Data interpretation was carried out by
using SPSS software. The results of the factor analysis method have revealed 9 important factors being accounted for
92.06% of the variance. From 26 detected variables, “constructing and expanding greenhouses” are the most
influential factors according to the farmers’ responses. Moreover, from other cases investigated lower ranks are
assigned to the role of well costs, water supply costs and agricultural input costs.