Why pure water is not derived from sea water by distillation?
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Because distillation of huge amounts of water takes huge amounts of heat, and heat is expensive to produce, no matter what means you use.
Mostly the energy costs. Fuel is the limiting factor, even in freeze distillation, which is more efficient. The exception is solar distillation, where the main expense is capital costs. A second factor is distribution. It costs quite a bit to pump the water long distances (both horizontally and vertically) to where it is needed.
For very large volumes of fresh water, they use reverse osmosis, which require massive amounts of electricity to pump the water under high pressure.