Definition:
Virtual water is the water “embodied” in an agricultural or industrial product, not in real sense, but in virtual sense. It refers to the water needed for the production of the product. If a country exports such a product, it exports water in virtual form.
Source:
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Food and Agriculture Organization of the United Nations, AQUASTAT Web Site
Hoekstra, A.Y. (editor). 2003. Proceedings of the International Expert Meeting on Virtual Water Trade. Value of Water Research Report Series 12, IHE Delft, Netherlands.