Danny Quinn also recorded a beautiful version of this on 'Solo' in 1999. I have long thought of this as the Dylan song that should be sung by people who do not sing Dylan songs.
It certainly starts out sounding like 'Waly Waly' (or 'The Water Is Wide') but diverges so much, in a variety of ways, that I think calling it a 'variant' is a bit of a stretch; it seems to me a considerably more distant relative.