Can new priority levels be added on a per-project basis?
There is no in-built feature within Jira to incorporate priorities per project. Atlassian have however confirmed (as on 15 Nov 2012) that this feature will be included in upcoming releases in the next 12 months.
Until then, there are two workarounds available.
https://jira.atlassian.com/browse/JRA-3821?focusedCommentId=212921&page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel#comment-212921
Try out the velocity template workaround suggested by Jeremy on 22/Oct/10 2:31 PM in the link above.
Jason,
No, Jira priorities will be applied per instance basis. As a workaround you could create a custom field to have different priorities per peroject.
I hope it helps!
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