Permian operators are pushing oil growth higher than we've seen in any other unconventional basin. Each incremental barrel of oil, however, also results in the production of several barrels of associated water. All of that fluid brings with it significant costs. Water-to-oil ratios not only increase over time, but can easily exceed 7:1, making it one of the highest water cut plays in the Lower 48. All-in water management costs can reach US$3/bbl. Produced water has created an impending supply risk to the overall Permian region because escalating costs will raise breakevens. The total volume of produced water is expected to grow by several million of barrels over the next five years and the low cost, simple solutions will become exhausted. What specific impact does produced water have on Permian economics and how does that influence growth potential as the cost curve shifts? What are operators doing to manage this ever-growing risk?