Good article.
Once you ask why then you can go forward with how.
We need to lower launch cost.
Which I think would be significantly advanced by the govt buying water test payloads. The water delivered to orbit would then be given to anyone who can convert it into LH&LOX (rocket fuel) and again the govt *could* be one customer of this rocket fuel. After a market for water in orbit has been established then it does not require further govt subsidy.
At same time we need to find water in space which is *minable*. Minable water is water which is easy enough to mine that it is economical to mine if enough volume is needed (there are customers which would pay for this product). The best possible location presently known that could have minable water is the lunar poles. NASA should explore the Moon to determine whether there is indeed minable quantities at the lunar poles (or other location if the best known location turns out to NOT have minable quantities of water).
The party which would possibly mine lunar water would be a private interests who would need enough information about the lunar poles so they can convince investors that there will be a return on investment dollars. Govt could provide some degree of certainty by offering to pay x amount of dollars for x amount of water or rocket fuel delivered. The place lunar water or rocket fuel would be delivered to would be on the lunar surface or lunar orbit (L-points/High earth orbit). Lunar water would need to be competive with *Earth* water/ Earth rocket fuel. At current launch prices water in high earth orbit [lunar orbit, L-points, etc] would cost around $10,000 per lb. The market price of water can be guess to be around 500 per lb in LEO and about $2000 per lb in *higher orbits* which means that water on the Lunar surface would be *worth* about $500 per lb. The market price of anything can only be roughly guessed, more certainty about future market prices can only achieved by actually having a market. And the very nature of space market of water would *require* that prices would significantly lower over time.