Three criticisms of the contingent valuation method (CVM) are considered in this article. One technique that would appear to answer such criticisms is choice modelling (CM). CM permits value estimates for different goods sharing a common set of attributes to be pieced together using the results of a single multinomial (conditional) logit model. The CM approach to environmental value assessment is illustrated in the context of a consumer‐based assessment of future water supply options in the Australian Capital Territory. CM is found to provide a flexible and cost‐effective method for estimating use and passive use values, particularly when several alternative proposals need to be considered.