This paper analyses the consequences of the joint implementation of the last Common Agriculture Policy reform and the Water Framework Directive (water pricing policy) in the irrigated agriculture sector. For this purpose, the irrigated area in Arévalo-Madrigal County (Ávila, Spain) has been considered as case study. The methodology used for this research has been the positive mathematical programming, employed in order to simulate the farmers' productive behaviour when facing different policy scenarios. Models built have allowed the estimation of different economic, social and environmental indicators that quantify policy impacts. Results show the sensibility of irrigated agriculture regarding both policies, circumstance that suggests that the