In terms of water pricing, the tipping point comes when you reach water scarcity, or have less water than you require. If you have 101 gallons and you only need 100, the price of water can be low or zero. When you reach the point where you only have 99 gallons, and you need a 100, suddenly that extra gallon becomes extremely valuable, particularly if that extra gallon is what enables you to keep that power plant running or maintain agricultural production.

When you refer to the price of water, I think you mean price of the resource. The price for abstraction. That has not been priced or regulated. Lux Research recently produced a report where they say we that we still ‘hunt’ water. We go out, find it where we can and use it. They see a vision emerging where we ‘cultivate’ water, through things like efficiency and water re-use. While water may not be priced correctly, water abstraction rights are allocated, and they have, or will soon have, a significant value. In California, farmers may find that the value of their water rights is their greatest assett.
In terms of a tipping point. I think if you look at the global increase in desalination over the past 20 years, that is a barometer which tells you something. The industry has grown hugely. It is predicted that the rate of growth in the water re-use market, will grow even more than the desalination market in the coming years.
The other element in the ‘cost of water’ or water pricing, is the cost of producing water. Energy is a large component of the costs of water treatment and water distribution. As energy prices rise, and as we have to pump water longer distances and desalinate water, the cost of providing potable water will inrease, even if the cost associated with abstraction remains at zero. That in itself will provide an economic driver. A carbon tax and GHG reduction targets will also focus minds on water efficiency.
Overall, from many different quarters, I am seeing a picture emerge of a more efficient water system. This will require change. And if there is a significant grass roots change in how things are done, this will open up new market opportunities for water technologies. Personally, I think the innovation is going to be led by small start-ups, these will most likely be acquired at some point in their life cycle by ‘Big Water’. Even if the overall market strucuture, in terms of the companies which dominate the space does not change, the way in which water is produced and used, will change.

It also seems to me that the markets for the diverse technologies involved in water purification and reclamation are particularly fragmented and relatively immature, compared with those of energy development and delivery. How do you see the application and marketing of water technologies evolving in the short term?

I am certain that we will see a monumental jump in interest and experimentation in this area over the next 8-10 years. Maybe we just need to get this pesky “renewable energy” thing off of our plate first.

For those of you in the discussion on the Eco Water Saver™ Shower Timer article at http://ecopreneurist.com/2009/02/01/eco-water-saver%E2%84%A2-shower-timer-green-blue-just-neat-idea/ the Water Meets Money Conference is a good example of a place where this type of promotional item does make sense.