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Water should never be a salable commodity. The only thing you should have to pay for is how it is delivered to your house or business.
Where I live, in AZ, we already have a private water deliverance system and company that has built and maintains that system. It works fine for our small community. In a large metropolis, say like New York City, It would cost a private company astronomical sums to do what is done here where I live. Therefore it is more cost effective for the NYC consumer to have the city government provide that water service since they can easily subsidize that cost with city levied taxes.