Soil-bentonite slurry trench cutoff walls are the most common type of vertical cutoff wall used in the US for seepage control and for passive control of contaminant migration at environmental sites. Design considerations are often limited to constructability considerations and a target hydraulic conductivity. With design-build contracts common, the backfill design is often left to the contractor. As a barrier soil, the hydraulic conductivity of bentonite slurry wall backfill is typically required to be equal to or below 1×10^-7 cm/s. The importance of stress state upon the hydraulic conductivity as well as the expected stresses are both established in the literature. Grain size distribution of the base soil and bentonite content both affect compressibility and hydraulic conductivity. This paper describes the results of studies undertaken to evaluate the interrelationships between compressibility, hydraulic conductivity, grain size distribution, and bentonite content. Three base soils were used representing a range of soils found on typical construction projects. Using these base soils, mixtures containing a range of dry bentonite contents from 0% to 5% were prepared to a slump consistent with field practice. The compressibility and hydraulic conductivity were measured in consolidometers adapted for falling head permeability tests at the end of each load increment. These experiments yielded the relationship between effective stress and hydraulic conductivity as well as consolidation characteristics including time rate of consolidation and coefficients of compressibility. The experimental results are then used to indirectly evaluate stress development and to assess the time needed for consolidation. The findings show a substantial decrease in hydraulic conductivity as effective stress increases, regardless of base soil type and dry bentonite content, a relative insensitivity of stress development to backfill compressibility, and a wide range of values for coefficient of consolidation depending upon backfill mixture and stress level.