Virtual water (VW) implies the volume of water required to produce a commodity.

The concept of virtual water was introduced by Professor Tony Allan to represent the hidden or indirect water used in the production and trade of goods and services. It refers to the water embedded in the production process, including water used for irrigation, processing, and manufacturing, to produce a particular product or commodity.

Virtual water trade involves the exchange of water-intensive goods and commodities between countries, taking into account the virtual water content of these products. By considering the virtual water content, countries can effectively manage their water resources by importing water-intensive goods rather than producing them domestically, especially in regions where water scarcity is a concern.

In this context, experts are exploring virtual water trade as a potential solution to the world`s water crisis by optimizing water usage, reducing water scarcity, and ensuring more efficient water allocation on a global scale.