Obtaining water rights in some other locale, and piping it into a town some way, is probably easier than competing against a trillion dollar entrenched tech ecosystem.
But the water system, or general utility problem, is interesting for many reasons.
Dual sets of infrastructure double the supply costs for a critical input like water, without actually increasing the supply that nature provides.
The solution to keep costs and prices down is then generally to give (or accept) a water supply monopoly, but with price regulation. That is the common solution to avoid price gouging in that monopoly situation.
