As far as local/non-local goes, the market does a pretty great job of figuring that out too (except when gas costs are subsidized, but that's another problem.) I would guess that if it were more efficient to have your water transported long distances, you might not mind that as much. After all, I don't suppose you restrict selling web services only to people you know in Richmond. Most people don't demand that their laptops be made locally, for example.

In fact, lack of control over the market is a feature, not a failure. When somebody does get control over market outcomes, usually bad things happen.

As a small-business owner, do you ever get local people leaning on you to offer more services because they "like to support the little guy"? Instead of dealing with you in a professional and businesslike manner, some people expect to be rewarded with favors because they're dealing locally. That seems crappy to me, but that also seems to be the logical extension of your argument--what is the benefit of buying locally but to lean on the supplier?

Here is a recent post by a bike-shop owner about that phenomenon which illustrates what I mean a little better:
http://planetarygears.blogspot.com/2007/07/pet-peeve.html

Basically, what I'm trying to say is that I really appreciate the anonymity and facelessness of the market. It's like nature or the weather to me--nobody will help you out but nobody will screw you over. Perfect competition (where it exists) is really a beautiful thing in my book.

Finally, with regards to the final take on Aquafina: I think I've only had bottled water as a last resort. I don't mind other people drinking it though, because they are paying for the privilege. The rest of us benefit from that. Think about it. That means some people are putting in a lot of time and energy for things that make our lives better, and all they want is a pretty label in return. That is a trade that I as a member of society am more than willing to make. Aquafina is basically volunteerism!