Chemically speaking, cannabinoids are generally very difficult to dissolve in water. In fact, most CBD products available in the industry were extracted using oils and fats as solvents. This is because cannabinoids are highly soluble in fats but almost completely insoluble in water.
In order to create a water soluble form of CBD manufacturers have to start by breaking the oil particles apart into tiny molecules. These particles are then emulsified, allowing them to remain stable in this form. The small particle size simply allows them to disperse throughout water – effectively increasing the surface area of the compounds.