A hydraulic system 32 for a compact wheel loader (10 in Figure 1) is provided. The hydraulic system 32 comprises first and second priority valves 36, 38 configured in series. The first priority valve 36 is connected at its supply input 40 to a source of hydraulic fluid 22, 24 and connected at its primary output 42 to a steering circuit 26. The second priority valve 38 is connected at its supply input 48 to a secondary output 44 of the first priority valve 36. The second priority valve 38 is connected at its primary output 62 to the rear auxiliary circuit 30, and connected at its secondary output 64 to the main implement circuit 28. Hydraulic fluid is supplied, in order of priority, to the steering circuit 26, then to the rear auxiliary circuit 30, and then to the main implement circuit 28. A method for distributing hydraulic fluid using the hydraulic system, and a compact wheel loader having the hydraulic system are also disclosed.
