One of the most important global issues of the twenty-first century is the critical importance of water for millions of people whose livelihoods depend on its wise use. In many regions around the world, water demand already exceeds supply, a phenomenon exacerbated by the world’s growing population. What matters is the planning, development, management, and trade of water—vital for natural resources, basic human needs, and national wealth. In recent years, water demand has increased due to the production of a variety of goods—ranging from food, fiber, and shelter. Over the years, China has emerged as a virtual water net importer, while countries like India and Pakistan are still dependent on water-intensive production techniques. These countries continue to export agricultural commodities posing a significant risk to water sustainability. This chapter covers the water marketing reality as a hidden cost in the agricultural production system and international trade. It is important to understand the political economy in the unsustainability of food and water resources and its influence on other factors related to food system dysfunction. Several case studies are also presented in this chapter highlighting the crucial role of water in agriculture to achieve food security. It explores how the international trade policy can improve water scarcity in water-stressed regions by a tradeoff between water-intensive and water-efficient crops. Finally, this chapter encourages a balanced approach to virtual water trade, highlighting the integration of sustainable water trade with technological innovation and the adoption of realistic water trading in agriculture. The authors call for collaborative efforts among governments, policymakers, and stakeholders to tackle water scarcity effectively and ensure water security for a more sustainable future.