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Malicious Compliance
People conforming to the letter, but not the spirit, of a request. For now, this includes text posts, images, videos and links. Please ensure that the “malicious compliance” aspect is apparent - if you’re making a text post, be sure to explain this part; if it’s an image/video/link, use the “Body” field to elaborate.
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We ENCOURAGE posts about events that happened to you, or someone you know.
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We ACCEPT (for now) reposts of good malicious compliance stories (from other platforms) which did not happen to you or someone you knew. Please use a [REPOST] tag in such situations.
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It doesn't look like the rule is from the event organizers. Most likely local government who want's the money from the event while keeping the turnover high so that people will come, spend their money, and fuck off as soon as possible.
I think it's more likely that the festival has other stalls selling water for a ridiculous markup.