A cannabinoid formulation and method for ocular or nasal delivery. The method of administration includes providing eye drops that comprise an aqueous solution of at least one water soluble cannabinoid, saline, and a vasodilator； and administering the eye drops topically to an eye of the subject. In an alternate method the cannabinoid formulation is a nasal spray delivered through the nose of a subject. Preferably, the vasodilator is 0.9% methylsulfonylmethane (MSM) in a MSM solution so that the MSM solution has a concentration of 5-15% in the overall formulation. Additionally, the at least one water soluble cannabinoid is encapsulated with a phospholipid liposome.
