Extreme weather events, such as droughts and floods, can have a significant impact on water resources and create investment opportunities in the water sector. Water shortages during droughts may raise the need for water-saving technologies like rainwater collection and greywater systems. Investors now have the chance to fund businesses that offer these solutions. Floods, on the other hand, can harm water infrastructure and necessitate its repair or replacement. Investing in businesses that are experts in building and maintaining water infrastructure can be profitable for investors. Investments in the water sector can generate financial returns while also assisting in the solution of pressing water concerns as extreme weather occurrences grow more frequent.