In a world where demand for water is on the road to outstripping
supply, many companies are struggling to find the water they
need to run their businesses. In 2004, for instance, Pepsi
Bottling and Coca-Cola closed down plants in India that local
farmers and urban interests believed were competing with them
for water. In 2007, a drought forced the US Tennessee Valley
Authority to reduce its hydropower generation by nearly a third.
Some $300 million in power generation was lost. Businesses
everywhere could face similar challenges during the next few
years. A larger global population and growing economies are
placing bigger demands on already-depleted water supplies.
Agricultural runoff and other forms of pollution are
exacerbating the scarcity of water that is clean enough for
human and industrial use in some regions, and changes in climate
may worsen the problem. Scarcity is raising prices and
increasing the level of regulation and competition among
stakeholders for access to water. To continue operating, com