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In this video tutorial, two methods for removing a watermark in Microsoft Word are demonstrated. The first method involves going to the Design tab, locating the Page Background group, clicking the arrow under Watermark, and selecting "Remove Watermark." This should eliminate the watermark from all pages. However, if this method doesn't work, the second method requires double-clicking the header area of the document to access header options for further removal. This approach provides a more general solution for persistent watermarks.