An annealed pre-alloyed water atomised iron-based powder suitable for the production of pressed and sintered components having high wear resistance is provided. The iron-based powder comprises 10-below 18% by weight of Cr, 0.5-5% by weight of each of at least one of Mo, W, V and Nb, and 0.5-2%, preferably 0.7-2% and most preferably 1-2% by weight of C. The powder has a matrix comprising less than 10% by weight of Cr, and comprises large M23C6-type carbides in combination with M7C3-type carbides. A method for production of the iron-based powder, a method for producing a pressed and sintered component having high wear resistance, and a component having high wear resistance are provided.