Is the sale of water prohibited?
Chapter on Selling Assets and Fruits
Al-Mughni
Book of Sales
Primary text
The sale of water is absolutely prohibited. The Prophet, peace be upon him, explicitly forbade selling water. Even attempting to circumvent this prohibition by calling rent a sale (i.e., renting the right to use the water) is deemed invalid, as it is merely a stratagem for selling. Evidence for this prohibition includes the hadith narrated by Jabir and Iyas ibn Abdullah al-Muzani, and the saying that Muslims are partners in three things: water, fire, and pasture (al-Kala').
Supporting text
If water is deemed unownable, the landowner has the greatest right to it due to its location on their property. If an outsider takes it without permission, they do not own what they take, as the water is originally permissible (mubah) like birds nesting or game entering one's land. However, water taken and collected into a container, or pasture gathered by rope, or minerals extracted, becomes owned by the person who acquires them and can then be sold without dispute, based on the hadith encouraging earning through labor rather than begging.