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In this video tutorial, the presenter demonstrates two methods for removing watermarks in Microsoft Word. The first method involves accessing the Design tab, navigating to the Page Background group, clicking on the arrow under "Watermark," and selecting "Remove Watermark," which successfully removes the watermark from all pages. However, if this method fails, the second method entails double-clicking the header area of the document to open header options, allowing for further removal of the persistent watermark. The tutorial emphasizes that the first method is straightforward but not always effective, prompting the need for the alternative approach.