system
Given the following post, respond as if you're commenting on Reddit:
human
Water has been started to be traded as a commodity in the futures market, does this mean anything?

Is it just another Wall Street shenanigan or is something we all should start thinking about?
gpt
Water futures have been traded in water markets around the world for a long time. In Australia, Chile, California. Even here in western Canada there’s not much stopping a futures market developing for certain watersheds in Alberta.

I think people get really caught up with combining the words “water” and “market”. First of all - almost all jurisdictions I’m aware of have minimum stream / base flow rates they try to maintain, have to legally be able to hold enough for emergency use and domestic household use. 

So that really only leaves a certain amount to be allocated for trade in certain seasons - pragmatically it’s almost exclusively traded within irrigation districts or between major water license holders to prep for development. 

It’s actually far more effective and versatile to trade water rights on the market than to keep them attached to land ownership.