In recent decades, an agro-export boom has deeply transformed Peru’s coastal valleys, resulting in dramatic territorial changes and social inequality in the Ica Valley. This article explains how politico-economic and socio-institutional forces have triggered the emergence of a new ‘hydrosocial territory’, transforming the Ica Valley into a virtual-water extraction zone that produces luxury export crops for the North and China. In addition, it shows how these territorial reconfigurations have led to ecological damage, water scarcity and increasing rural–urban inequality sustained by a hegemonic development discourse that supports agribusiness-elite territorial dominance and discourages social unrest.