7 economic importance of water

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Water is perhaps the most important commodity on earth.

There can be no life on earth without water.

Therefore, water plays a very crucial role in every existence of human beings and other animals, as well as in their activities.

Economic uses and importance of water:

  • Water is used to clean clothes and other fabrics in homes. On commercial basis, it is used by dry cleaners, capital washing firms and domestic and office cleaning companies.
  • In manufacturing industries, water is used for various purposes. These include washing raw materials, washing containers and machines, diluting chemicals or ingredients as well as a raw material in industries such as in beverages industries e.g Coca cola

  • Water is also put to several uses in the agricultural sector. Among others uses, it is used to irrigate crops and given to farm animals to drink.
  • Water is a key component of the electricity generation process. It may be directly used to turn turbines that generate electricity or it may be heated to produce steam which is then used to power machines that produced electricity.
  • Water is used for recreational purposes such as swimming. People pay to use facilities such as swimming pools, thus generating income for those who run the facilities.
  • Water facilitates the growth and development of the fishing industry. This is because water supports the existence of fish in rivers, lakes, ocean or in fish ponds.
  • People who sell water in estates earn income from this activity. Water provision also generates money for supplying water to homes, offices and industries.


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