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A watermark is a picture or a block of text that appears faintly behind the text of a document. The watermark is usually added to the Header and Footer, rather than to the main document, although you can move the watermark anywhere on the page.

To create a watermark, open the View menu and choose Header and Footer. Place the cursor into either the Header or the Footer, and insert the picture you want to use as your watermark (from the Insert menu, choose Picture, then either From Clip Art or From File). Double-click on the picture to open the Format Picture dialog box. Select the Layout tab, and choose Behind text. Select the Picture tab, and choose Watermark from the Color: drop-down box. To make the watermark lighter (or darker), adjust the Brightness: and Contrast: levels. Click OK to close the dialog box. You can now position and resize the picture as necessary. Click the Close button on the Header and Footer toolbar. The watermark will appear in the same position on each page of your document.

If you want to add a watermark to only one page of the document, insert a graphic into the document. Double-click on the graphic to open the Format Picture dialog box. Choose the Picture tab, and choose Watermark from the Color: drop-down box. From the Layout tab, choose Behind text, then click OK. You can now reposition and resize the picture on the page.

You can also use WordArt to create a watermark. From the Insert menu, choose Picture, then WordArt. From the WordArt Gallery, choose the style you want, then click OK. Type the watermark text in the Your Text Here box, then, click OK. Position and resize your WordArt watermark as necessary. If you want to lighten the watermark, select the watermark, then from the Format menu, choose WordArt. Choose the Color and Lines tab, and choose a lighter color from the Colors: drop-down box. If you want the WordArt watermark to repeat on every page of your document, create your watermark in Header and Footer view, as described above.