Improved water management practices andtrade in "virtual water" can help alleviate waterscarcity, release water for more efficient uses, increaseproductivity, and ultimately reduce food prices forconsumers. Investments in these areas can therefore drivegrowth and poverty reduction, both directly and indirectly-because they may reduce food costs and supply uncertainties,improve the diets of the rural and urban poor, raise anddiversify incomes, provide employment and entrepreneurialopportunities both inside and outside cities, and inducesmallholder farmers' productivity gains, which wouldincrease their opportunities for wealth creation and betterintegrate them into local, national, and international markets.