Yesterday, in a city of nearly 700,000, thousands of people lost access to clean running water . Eleven schools were closed, forcing children home early. And what began as an isolated incident quickly spread, as residents all over the city noticed either water discoloration or a substantial drop in water pressure.

This mishap did not occur in some far-off undeveloped country. It happened here, in downtown Baltimore. The city Green Chip Stocks calls home.

Apparently, at around 10:30 a.m., a 48-inch water main broke that sits on the bottom of the Patapsco River and brings water into South Baltimore. The location of the break was not discovered until early afternoon, and still has not been repaired.

This is just another in a long line of incidents that illustrates what I've been writing about for the past few months.

Last week I told Green Chip Stocks members about a town in Massachusetts that was nearly out of water, and about Birmingham, Alabama, where the city has issued incentives to catch people who are stealing water. (I guess that's becoming a significant issue there.)

It seems nearly every day there is a story somewhere that, in one way or another, highlights the notion that water is the new bull market.

Pure Water, Pure Profits

Now, there is a multitude of ways to play the water angle. In past issues I've talked about various ways to take advantage of a looming water shortage . I've talked about everything from desalination to meter manufacturers.

And although there are definitely ways to profit from all the opportunities I've talked about, the market has been extremely favorable to purification technologies of late.

Basin Water (NASDAQ: BWTR) uses an ion exchange system to purify water for utilities, municipalities, and real-estate developers. Their systems purify over 75 million gallons of water a day, and they're contracted with some of the nation's largest utilities.

In the past year the stock has almost doubled and it shows no signs of slowing down. Take a look:

There's also the success story of Pittsburgh-based Calgon Carbon (NYSE: CCC). This company is the world's largest manufacturer and supplier of granular activated carbon purification systems. It is also the company that sparked my interest in the water investing revolution.

In the past year, this company has seen increases of over 231%. Their most recent earnings report beat Street analysts by $0.04 per share, and the stock is now predicted to rise at least 25% in the coming year. Of course, I think it could go even higher. Check it out:

And who could forget about WorldWater and Power (WWAT.OB). This superstar stock has, at certain times, seen gains of up to 1,700% in the last year. WorldWater makes modular water purification systems that are powered exclusively by solar panels.

Fortunately, WorldWater was one of Green Chip's first recommendations and our members have been basking in its gains since 2005. Take a look at its performance over the past two years:

I've also got my eye on a small Canadian water purification company that has recently announced an upcoming contract with a major American water company.

And folks, this is just the beginning. Soon, all sectors of the water industry will start to flow freely. It will be a proverbial high tide of profit-taking.

Every aspect of the water industry, from pipe replacement (as we just saw in Baltimore) to desalination and wastewater treatment, will soon begin to deliver scads of profits for the savvy investors who stay ahead of the curve.

To help make that happen, I've compiled a detailed report on the current state of the water industry and how to profit from emerging opportunities. You can view this free report by clicking here.

For our subscribers, I've compiled the Green Chip Water Index—a list of 20 companies (each with its own report) that I believe are going to grow as this water market matures. But you have to be a member to access this information.

Enjoy the free report.

Until next time,

Nick