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In this video tutorial, the process of removing a watermark in Word is explained. A watermark, such as "Draft," signifies the document's status, but once editing is complete, it needs to be removed. Users might consider double-clicking the watermark to remove it, but this method is ineffective. Instead, the correct approach involves navigating to the "Design" tab, clicking on the "Watermark" option, opening the drop-down menu, and selecting "Remove Watermark." The watermark will then be successfully eliminated from the document.