A wet market is just a ... market that sells fresh food.

Sydney’s fish market is a wet market.

Melbourne’s Queen Street market is a wet market.

Most of Sydney’s Paddy’s market is a ‘dry market’ - but there is still a fresh food - ie ‘wet market’ - section.
They were dubbed ‘wet markets’ because of their wet floors from ice used to keep food fresh.

The problem is wildlife trade - particularly the sale of live wildlife for slaughter. This was banned in China briefly after SARS and is currently not allowed in the reopened wet markets
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