AP Photo/Jae C. Hong, File
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 Walmart for 88 cents per gallon, meaning that $1 of water from Sacramento turns into $658.24 for Walmart 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% urban water reduction 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 Walmart spokesperson told the Guardian that the company is "very concerned" about how the drought is affecting customers and associates.
"We share those concerns and are tracking it closely," the spokesperson 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."
We reached out to Wal-Mart for comment and will update when we hear back.
Here's what people are saying on Twitter.
Wal-Mart's drought profiteering: It makes $600 for every $1 it spends on California's dwindling water supply http://t.co/grFWgqtWfv
- Salon.com (@Salon) May 11, 2015
Walmart & Starbucks are still getting their water from California regardless of the drought.profit - people = corporation agenda
- Remy LeBeau (@humorinreality) May 12, 2015
Californians told to cut water consumption by 25%. Does not apply to Wal-Mart, Coca-Cola, & Pepsi http://t.co/lRSNjitNSE #DroughtShaming
- Bacon Envelope (@BaconEnvelope) May 12, 2015
EVIL COMPANY!! Walmart Is Now Selling CHEAP Bottled Water . . . That They Got From DROUGHT-RIDDEN California!!
- Wackymoe (@wackymoe) May 12, 2015
It's not just Nestlé that's raping the water supply in California. Walmart is doing the exact same thing, while... http://t.co/8HZGc2kAQq
- Jack Langiano (@giovanni75) May 11, 2015
#Starbucks, #WalMart and other big bottled water sellers must leave #California alone. http://t.co/Iz3PsVQF48 pic.twitter.com/Vwc7viyDqI
- TomWaseleski (@PG_TomWas) May 12, 2015