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In this video tutorial, the presenter explains how to remove a watermark in Microsoft Word. Watermarks can signify statuses such as "Draft," "Confidential," or "Urgent." To remove a watermark, instead of double-clicking it (which won’t work), users should navigate to the “Design” tab. From there, they should click on the watermark dropdown arrow and select "Remove Watermark." This simple action will effectively remove the watermark from the document.