Much debate over proposed water-bottling facilities focuses on the potential for local communities to derive economic benefits from their endowments of water through jobs created at a bottling plant. An evaluation of the full economic consequences of such proposals, however, must take into account the trends that are shaping economic conditions locally and across the globe. One such trend is the evolving economic value of natural resources, including water. High-quality natural resources remain important to an area’s economic health, but they contribute to the economy in multiple and more complex ways than in the past.

To evaluate the economic consequences of proposals to extract local water resources for use as bottled water, decision makers must weigh the risks associated with making binding decisions about local water resources in the face of uncertainties. Trends indicate that water will only grow in importance to the economy. In addition, there is uncertainty about the ability of future water supplies to meet the potential future demands. Population growth, changes in precipitation and drought, climate change, and regulations on streamflows and water diversions all have implications for the economic value and use of water now and in the future.

In this context, we develop several case studies of small communities across the U.S. where water is extracted for bottling or where there are proposals to do the same. Our findings identify economic benefits, costs, and risks that resource managers and others in local communities should consider when evaluating water-bottling proposals.