Akbar - Birbal : A farmer bought a well

Emperor Akbar once ruled over India. He was a wise and intelligent ruler, and he had in his court the Nine Gems, his nine advisors, who were each known for a particular skill. One of these Gems was Birbal, known for his wit and wisdom. The story below is one of the examples of his wit. Do you have it in you to find out the answer?

A farmer and his neighbour once went to Emperor Akbar's court with a complaint.
'Your Majesty, I bought a well from him,' said the farmer pointing to his neighbour, 'and now he wants me to pay for the water.'
'That's right, your Majesty,' said the neighbour. 'I sold him the well but not the water!'
The Emperor asked Birbal to settle the dispute.

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'Didn't you say that you sold your well to this farmer?' Birbal asked the neighbour. 'So, the well belongs to him now, but you have kept your water in his well. Is that right? Well, in that case you will have to pay him a rent or take your water out at once.'
The neighbour realized that he was outwitted. He quickly apologised and gave up his claim.