Water is everywhere, but how much is safe to drink? Whether it be bathing, cooking or drinking, water is certainly our most valuable and vital resource on earth. It may be debatable, but it is possible that the human race could survive without oil, but we cannot survive without clean drinking water. There is a finite supply of water, there is no substitute for water and it cannot be manufactured.

This story is about water and how the water industry is fast becoming an investment opportunity. The demand for fresh clean drinking water will never wane. Whatever happens, humans require water and there is no alternative.

Although it may seem like the earth’s water supply is unlimited, in fact, only 2% is suitable for drinking and half of that is locked up in the polar ice caps, virtually unattainable at this point in time. With global warming the fresh water ice is melting into the oceans each year and turning into salted seawater. A disturbing phenomenon considering that half of the fresh drinkable water on earth will melt away forever.

It is expected that more than a billion people will be added to the world’s population by 2020, and every single person will be competing for our most precious supply of fresh water. The statistics from the International Water Management Institute are staggering. A mere 20% of the world has access to clean running water with demand doubling every 20 years. A third of the world’s population lives in water-stressed regions and 90% of the world’s cities still dump sewage into natural waterways.

Western worlds are seeing water stresses with old and decaying infrastructures. It is estimated that it will take over two hundred years to upgrade water pipes in London, U.K. The expected cost is about $180 billion a year to build the water infrastructure in China and India. In Canada, Toronto will experience a 9% hike in water rates to rebuild the decrepit infrastructure. The city reports a shortage of $800 million needed to replace aging water system in Toronto. In 2006 nearly a million residents of Vancouver were under Canada’s biggest ever boil-water advisory, after a storm stirred up reservoirs and overwhelmed the water treatment system. To upgrade Canada’s water and wastewater infrastructure, it will cost up to an estimated $90 billion over the coming decades. Take that figure and multiply it ten times for our neighbors to the south.

We bring you this disturbing truth to make you aware of the investment opportunities developing in the water industry. It is a diverse global industry ranging from pipes and taps, to high tech electronic monitoring systems, filtration systems and includes chemicals and treatment facilities and even bottled water opportunities.

Simply stated, the industry is poised to benefit from the growing global demand for water. Many firms involved are old established companies with a long history of profitably. This sector of investing is considered by many to fulfill a desire to invest in a clean and ethical manner. If the idea of investing in companies focused on providing fresh, clean water to the planet seems like a cutting edge concept, you should contact your financial planner to learn how you can participate this unique and interesting investment opportunity.

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.