The thermodynamic quantities ΔG°, ΔH°, ΔS° and ΔC°p associated with the solvation of argon in water and aqueous mixtures are reinterpreted on the basis of two contributions. The first is related to the hydrogen-bonding connectivity of water and is assumed to be approximately represented by corresponding thermodynamic quantities in solvents such as hydrazine and ethylene glycol; following a proposal by Lumry and Frank [R. Lumry and H. S. Frank, Proc. 6th Int. Biophys. Congr.(1978), vol. 7, p. 554; R. Lumry, in Bioenergetics and Thermodynamics; Model Systems, ed. Y. Braibanti (Reidel, Dordrecht, 1980), p. 405] this contribution determines the free energy of hydrophobic hydration and is dominated by a positive enthalpy. The second contribution, which is responsible for marked enthalpy–entropy compensation and large heat-capacity effects in argon hydration, is assigned to the characteristic fluctuation behaviour of liquid water. This assignment is substantiated by comparisons of the bulk properties of water and various other liquids, and a model is suggested to rationalize the uncommon thermodynamic properties of water, aqueous mixtures and solutions of hydrophobic solutes. The phenomenological representation proposed is an overlay of a randomly connected H-bond network and a local fluctuation process defined in terms of a minimum cooperative unit. This process, labelled “geometric relaxation”, is pictured as a cooperative H-bond rearrangement involving a water molecule coordinated by four neighbours. The limiting microstates of the cooperative units are “short-bond” forms (with short, stiff, near-linear bonds) and “long-bond” forms (with long, weak, bent hydrogen bonds). The first is dominated by the low enthalpy of short hydrogen bonds and the second by the high entropy resulting from motions of the water molecules on flexible hydrogen bonds into the free volume not available to the “short-bond” form.