When there’s enough water, life thrives. It is necessary for the health and wellbeing of plants, animals and people. It supports growth, prosperity and safety for all communities. In fact, most cities took root because a source of water was nearby. But, today, research shows that half of all people live in places where their water sources are being degraded or used up faster than they are being replenished.

That means major losses for people and nature. Deforestation, poor agricultural practices and other unsustainable land uses result in less water flowing downstream, fewer fish and other wildlife, and more pollution. In 2018, Cape Town came within 90 days of “day zero,” when the city’s taps would be turned off. In 2019, Chennai—India’s sixth-largest city—has essentially run out of water. These are not isolated incidents. Forty percent of the world’s watersheds are unhealthy, threatening approximately 1.7 billion people living in cities. The incentives to secure water are clear. But, when it comes to water, the real return on investment is in protecting and restoring watersheds—where water comes from. Forward-looking businesses, governments, water utility companies and other water users are already collectively investing in their future water supplies through water funds—innovative collaborations that secure long-term funding for the conservation of their watersheds. With almost three dozen water funds in operation globally, the impact of these funds is already significant. Water funds can help meet the world’s rapidly growing need for clean water—and a host of other environmental and economic challenges—but only if we can mobilize investment on a global scale.