We use a statistical thermodynamic approach and a simple thermodynamic model of hydration to examine the molecular origins of the volumetric properties of solutes. In this model, solute-solvent interactions are treated as a binding reaction. The free energy of hydration of the noninteracting solute species coincides with the free energy of cavity formation, while the free energy of solute-solvent interactions is given by the binding polynomial. By differentiating the relationship for the free energy of hydration with respect to temperature and pressure, one obtains the complete set of equations describing the thermodynamic profile of hydration, including enthalpy, entropy, volume, compressibility, expansibility, and so forth. The model enables one to rigorously define in thermodynamic terms the hydration number and the related concept of hydration shell, which are both widely used as operational definitions in experimental studies. Hydration number, n(h), is the effective number of water molecules solvating the solute and represents the derivative of the free energy of hydration with respect to the logarithm of water activity. One traditional way of studying hydration relies on the use of volumetric measurements. However, microscopic interpretation of macroscopic volumetric data is complicated and currently relies on empirical models that are not backed by theory. We use our derived model to link the microscopic determinants of the volumetric properties of a solute and its statistical thermodynamic parameters. In this treatment, the partial molar volume, V, of a solute depends on the cavity volume, hydration number, and the properties of waters of hydration. In contrast, the partial molar isothermal compressibility, K-T(o), and expansibility, E-o, observables, in addition to the intrinsic compressibility and expansibility of the cavity enclosing the solute, hydration number, and the properties of waters of hydration, contain previously unappreciated relaxation terms that originate from pressure- and temperature-induced perturbation of the equilibrium between the solvated solute species. If significant, the relaxation terms may bring about a new level of nonadditivity to compressibility and expansibility group contributions that goes beyond the overlap of the hydration shells of adjacent groups. We apply our theoretical results to numerical analyses of the volume and compressibility responses to changes in the distribution of solvated species of polar compounds.