The company sources the water for its "Great Value" brand from Sacramento's municipal water supply, according to labeling on the gallon jugs, CBS Sacramento reports.
"Sacramento sells water to a bottler, DS Services of America, at 99 cents for every 748 gallons — the same rate as other commercial and residential customers," according to the report. "That water is then bottled and sold at Wal-Mart for 88 cents per gallon, meaning that $1 of water from Sacramento turns into $658.24 for Wal-Mart and DS Services."
California residents are facing mandatory water rationing as the state enters its fourth year of a record-breaking drought. Gov. Jerry Brown recently signed an executive order calling for a 25% reduction in urban water usage statewide.
"It's certainly leaving a bad taste in everyone's mouth when you can't fill up a swimming pool, if you're building a new home in West Sacramento; you can't water your lawn if you're living in this region. And to find out they're making a huge profit off of this, it's just not right," public-relations expert Doug Elmets told CBS Sacramento.
Starbucks also recently came under fire for sourcing water from California. The company was forced to find a new supply after a public backlash.
A Wal-Mart representative told The Guardian that the company was "very concerned" about how the drought was affecting customers and associates.
"We share those concerns and are tracking it closely," the representative said. "Our commitment to sustainability includes efforts to minimize water use in our facilities. We have and continue to work with our suppliers to act responsibly while meeting the needs of customers who count on us across California."
