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In this video tutorial, the presenter explains two methods for removing a watermark in Microsoft Word. The first method involves navigating to the Design tab, then selecting the arrow under the Watermark option in the Page Background group to click "Remove Watermark," which typically removes it from all pages. However, if this method doesn't work, the presenter suggests a second, more general approach. This involves double-clicking on the header area of the document to access header options, allowing users to manually remove the watermark. The video provides clear step-by-step instructions for both methods.