A zirconium alloy suitable for forming reactor components that exhibit reduced irradiation growth and improved corrosion resistance during operation of a light water reactor (LWR), for example, a boiling water reactor (BWR). During operation of the reactor, the reactor components will be exposed to a strong, and frequently asymmetrical, radiation fields sufficient to induce or accelerate corrosion of the irradiated alloy surfaces within the reactor core. Reactor components fabricated from the disclosed zirconium alloy will also tend to exhibit an improved tolerance for cold-working during fabrication of the component, thereby simplifying the fabrication of such components by reducing or eliminating subsequent thermal processing, for example, anneals, without unduly degrading the performance of the finished component.