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In this video tutorial, two methods for removing a watermark in Microsoft Word are demonstrated. Method one involves going to the Design tab, locating the Page Background group, and clicking the arrow under "Watermark" to select "Remove Watermark," which typically removes the watermark across all pages. However, if this method fails, a second, more general method is outlined. This involves double-clicking the header area of the document to access header options, which enables the user to remove the persistent watermark. The tutorial emphasizes the effectiveness of both methods and guides viewers through the steps clearly.