Investors Can Now Trade On and Profit From California Water — How Might That Work Out?

It’s not just Californians paying attention to the state’s water supply anymore. It’s Wall Street.

In a sign of the growing value of water in a warming world, investors began trading futures of the coveted commodity, tied to California water prices, for the first time last week.

The novel marketplace allows speculators to make money betting on future prices of California water while allowing farmers, businesses and municipal suppliers to hedge against price swings and stabilize their costs.