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[hazzard]

My take on it is, how many snakes incubate in water?

The only reason for this is as others have said is for humidity purposes. I have hatched 100% of my eggs for the last 3 years using and accurate thermoline humidity an temp controlled incubator (accurate to 0.1degrees c and 1/2% humidity). Although it cost me $10,000, how much is a hatchling Chondro worth.

Vermiculite works fine. Any sunken eggs can be re-hydrated simply by placing a sterile moist paper towel over the top of eggs to further increase humidity. As long as you don't leave it there for ages at a time. I've brought back some severely dehydrated eggs like this.

Whatever works mate, water just sounds pretty fiddly to me.