Investing in Water Rights and Water Infrastructure

Water is one of the most essential—and undervalued—resources on the planet. As global demand rises and climate risks intensify, access to and control over water assets is becoming increasingly strategic. For investors, water rights and infrastructure represent a rare combination of scarcity, necessity, and long-term return potential.

In this blog, we explore how to invest in water as an asset, the structures behind rights-based and infrastructure exposure, and what to consider when integrating water into a long-term portfolio.

Why Water Is a Strategic Investment Theme

1. Non-Substitutable: Water is essential to life, agriculture, and industrial activity

2. Finite Supply: Less than 1% of global water is readily accessible for human use

3. Climate Pressure: Drought, population growth, and urbanization are driving supply/demand imbalances

4. Policy-Driven Markets: Government regulation shapes access and pricing

5. Real Asset Characteristics: Physical infrastructure offers yield, stability, and inflation protection

Water Investment Channels

1. Water Rights

• Ownership or leasing of legal entitlements to use water (often tied to agricultural or industrial land)

• Value driven by scarcity, legal seniority, and geography (e.g., Western U.S., Australia)

• Traded in private markets or through brokers

2. Water Infrastructure

• Pipelines, treatment facilities, reservoirs, desalination plants

• Often accessed through private equity, infrastructure funds, or public utilities

• Revenue generated via user fees, utility contracts, or municipal agreements

3. Water-Focused Funds and Public Vehicles

• ETFs and listed equities in water technology, utilities, or treatment companies (e.g., Invesco Water Resources ETF, American Water Works)

• Private funds targeting mission-critical infrastructure or distressed water assets

Key Investment Considerations

• Legal Framework: Water rights are governed at the state or regional level with complex rules

• Geographic Risk: Climate conditions and policy vary widely across jurisdictions

• Valuation: Water rights pricing is opaque and varies by use, seniority, and volume

• Infrastructure Lifecycle: Capital intensity and permitting complexity for large-scale projects

• Regulatory and Political Risk: Public backlash or policy shifts can affect pricing and access

ESG and Impact Alignment

• Water investments directly support climate adaptation, public health, and food security

• Positive impact when paired with conservation, reuse, or efficiency initiatives

• Transparency around access and equitable distribution is increasingly important

Raziel allows investors to categorize and monitor water-focused assets within broader real asset and impact portfolios.

With Raziel, you can:

• Tag assets by type (rights vs. infrastructure), location, and contract structure

• Benchmark returns against other resource investments (e.g., timber, farmland)

• Track regulatory updates, drought conditions, and pricing shifts

• Model risk exposure across climate and utility scenarios

Tapping Into a Liquid but Limited Resource

Water is not only the foundation of life—it is a future-proof investment theme rooted in necessity, resilience, and long-term value. For investors seeking scarce, strategic assets that align with sustainability and global stability, water deserves serious consideration.