According to dictionary.com the basic meaning of the word touting is to describe or advertise boastfully; publicize or promote; praise extravagantly But why would locales tout limestone water supplies? Can I replace it with more accurate synonym?
You seem to have two or three questions.
I find this sentence a little awkward...
Meanwhile, some of the best bourbon made outside of Kentucky hails from locales touting limestone water supplies.
A locale is a physical location, and physical locations really can't "tout" anything. The word "supplies" is also clumsy. I would change the sentence to something like this:
Some of the best bourbon made outside Kentucky hails from locales boasting limestone water reserves.
Some of the best bourbon made outside Kentucky hails from locales blessed with limestone waters.