OTTAWA(Reuters) - Fresh water is the latest commodity heading for boom times, and Canadian investors can tap into water-themed funds that aim to profit from so-called "blue gold".It is estimated that 1.1 billion people do not have access to clean drinking water, and the cost to meet basic water delivery needs in the next five years will be $1 trillion.

Population growth, climate change, urbanisation, intensive agriculture and industrialisation are all contributing to the spike in demand.

"The reason water's increasing in value is because there's just not enough of it," said Som Sief, president of Claymore Investments Canada, which launched the Claymore S&P Global Water ETF on June 4.

"The reality is, as it gets more and more in demand, people who are selling it are seeing the profit potential."

These are good times for the water industry and the market wants ways to capitalise. "It doesn't count to predict the rain, what counts is building the ark," billionaire investor Warren Buffett is quoted as saying.

Water-themed funds invest largely in the companies that build pipelines, pumps, drills and water treatment equipment and those that supply water or treatment services.

Criterion Investment launched Canada's first water-themed fund, the Criterion Water Infrastructure Fund, in February. The mutual fund's investing is managed by Swiss-based Pictet Asset Management, which runs a water-focused fund in Europe.

Toronto-based Sextant Capital also launched its offshore Global Water Fund in late May.

These themed funds are one of the few ways to play the water sector, said Guardian Group of Funds' chief investment officer Gavin Graham.