The Stampriet Aquifer is the largest aquifer in Namibia covering an area of 65,000km2 . Presently there is a water-abstraction system approximating open-access operating among the commercial farming community drawing groundwater from this aquifer. Depletion is evidenced by a falling water-table level over time. Farmers currently pay the full financial cost of water abstraction, but although a system of groundwater permits exists, it is poorly enforced. A largescale geo-physical study on the Stampriet Aquifer is underway, part of which included a hydrocensus of approximately 1500 farms, concentrating on physical and socio-economic variables. This hydrocensus is currently being completed with over 600 returns and includes more robust data on water and its use than exist for any other area or aquifer in Namibia. This paper aims to firstly create the baseline information to calculate the economic value of water in the Stampriet area. Using residual value analysis, the marginal value product is estimated for surveyed farms in the area. A typical farm is modelled using enterprise models and data from a face-to-face questionnaire. It is found that while water is a very important and integral resource, the economic efficiency of the farms is poor. A financial water 'value' of N$ 0.03 and an economic water 'value' of N$ 0.64 per cubic metre is calculated, and the policy implications of this discussed. The analysis is then supplemented by the initial, more robust hydrocensus data, used to conduct further examinations and to start to build an environmental economic model for all activities impacting on the Stampriet Aquifer. This study is being used as a pilot to test the ability of economics techniques to provide a realistic and accurate value for water in Namibia. The results of the study and techniques used are also of use to other future water valuation studies in Namibia and will also be used to inform the water sector policy in promoting economic development. Keywords: Namibia, Stampriet, economic value, groundwater, residual value analysis.