I establish three closely related claims. The first two are interpretive, the third theoretical. (1) The prevailing conception of moral economy in political science, presupposed by opponents as well as advocates, rests too heavily on the distinction between nonmarket and market-based societies. (2) The prevailing conception of moral economy reduces to the unduly narrow claim that economic incorporation of a nonmarket people is the basis for the moral indignation that leads to resistance and rebellion. (3) Reconceptualizing moral economy in terms of social goods reveals additional grounds for politically significant moral indignation and permits moral-economic political analysis of a larger set of cases and phenomena. Water politics in the arid American West illustrate the power of a conception of moral economy based on social goods.