unfortunately it is happening in Canada dianavan.
and Nerd I do believe it is not just some promoters wanting to make money. The big soft drink companies often have contracts to provide the water. (I havent seen it in a festival here because it definitely wouldnt go over) but its happening at University of British COlumbia.

water fountains have out of order signs and you have to buy bottled water from a vending machine. (ostensibly the pipes are rusty and dirty and would cost too much to replace - why indeed when you could make money by selling the water concession to soft drink suppliers)

and the other thing that bothers me about bottled water - is that (at least in Canada) there are no regulations or controls as to what that water is.

(in fact a friend who owns an investigations agency said companies were caught using tap water in their bottled water)