Growing pressure on water resources necessitates innovative solutions like water markets, supported by participatory approaches and emerging technologies. Traditional management structures are proving insufficient. Social water banking aims to promote transparency, improve social equity and foster trust among stakeholders, ultimately enhancing water governance. This study investigates the feasibility of establishing water markets centered around Social Water Banking, exploring the potential of augmented and virtual reality (AR/VR) to facilitate effective water resource governance in Iran's central plateau. A survey was conducted with 500 water sector stakeholders, assessing the institutional, social, economic and environmental prerequisites for successful water markets, and evaluating Social Water Bankings role in enabling participatory governance and transparent market operations. Results indicated a generally positive perception of the functional benefits associated with water markets, including improved water conservation, increased productivity and enhanced environmental sustainability. However, significant concerns persist related to legal, institutional, and social acceptance factors, particularly regarding transparency and the assurance of equitable water allocation. Crucially, the study's findings confirm the potential of Social Water Banking to serve as a valuable intermediary and facilitator, bridging existing governance gaps, increasing information transparency, fostering trust among stakeholders and supporting the creation of fair and efficient water markets The recommendation is to prioritize the strategic implementation of Social Water Banking, integrated with emerging technologies like AR/VR to develop water markets in Iran that are not only more transparent and equitable but also better equipped to ensure the sustainable management of vital water resources.