I just noticed when I thought about it.
Wells are super-productive in DESERTS...and they produce water.
Any comments?
Did you notice?
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Well, this answer still doesnt work for Kapilands, but oil wells generally produce more water than oil. It's just that it's saltwater. But, maybe just like concrete production (from stones) is assumed to be in the cost of the stones in Kapilands, there could be some future tech (read cheap) desalinization process assumed into the cost of water production.
Most of the earths land masses have water held deep underground. Some places you can find oil but that is (these days) very deep underground. Water is found in deserts just buy digging a hole. Australia is mostly desert, our Aboriginals have been living here for 20k-40k years. Sand is a natural filter. Ground water may be salty but not necessarily. Some call is bore water.