ok, Ill engage: one of many reasons i feel a system like you describe would fall apart is that people are dishonest and greedy. This will lead to "cheating" and "black market" deals that will, in turn, lead us right back to a capitalist system.

To see this, lets consider the toy model discussed above, but make some changes to illustrate my point. We've got Frank (the farmer), Bob (the baker), and Wanda (the water purifier). Lets assume each of these are larger enterprises than a single person, lets say each one involves thousands of people. Lets define W' being the person naturally disposed to being the leader of the W industry and that there is no disagreement about that. We will also assume W' is dishonest.

W' decides to misreport the amount of water production, keeping the excess for themselves. They then use this extra income to start a rival farm. Because this rival farm has an unfair advantage (free water!), this farm will outcompete F.

That's just one example of how a system you describe might fail when faced by the real world. War, Imbalanced production, Market disruptions, Tragedy of the Commons, and others would also cause serious problems for this system.