A water footprint shows the extent of water use in relation to consumption by people. The water footprint of an individual, community, or business is defined as the total volume of fresh water used to produce the goods and services consumed by the individual or community or produced by the business. Water use is measured in water volume consumed (evaporated) and/or polluted per unit of time. A water footprint can be calculated for any well-defined group of consumers (e.g., an individual, family, village, city, province, state, or nation) or producers (e.g., a public organization, private enterprise, or economic sector), for a single process (such as growing rice) or for any product or service.

Traditionally, water use has been approached from the production side, by quantifying the following three columns of water use: water withdrawals in the agricultural, industrial, and domestic sector. While this does provide valuable data, it is a limited way of looking at water use in a globalised world, in which products are not always consumed in their country of origin. International trade of agricultural and industrial products in effect creates a global flow of virtual water, or embodied water (akin to the concept of embodied energy).

In 2002, the water footprint concept was introduced in order to have a consumption-based indicator of water use, that could provide useful information in addition to the traditional production-sector-based indicators of water use. It is analogous to the ecological footprint concept introduced in the 1990s. The water footprint is a geographically explicit indicator, not only showing volumes of water use and pollution, but also the locations. The global issue of water footprinting underscores the importance of fair and sustainable resource management. Due to increasing water shortages, climate change, and environmental concerns, transitioning towards a fair impact of water use is critical. The water footprint concept offers detailed insights for adequate and equitable water resource management. It advocates for a balanced and sustainable water-use approach, aiming to tackle global challenges. This approach is essential for responsible and equitable water resource utilization globally. Thus, it gives a grasp on how economic choices and processes influence the availability of adequate water resources and other ecological realities across the globe (and vice versa).

There are many different aspects to water footprint and therefore different definitions and measures to describe them. Blue water footprint refers to groundwater or surface water usage, green water footprint refers to rainwater, and grey water footprint refers to the amount of water needed to dilute pollutants.

A blue water footprint refers to the volume of water that has been sourced from surface or groundwater resources (lakes, rivers, wetlands and aquifers) and has either evaporated (for example while irrigating crops), or been incorporated into a product or taken from one body of water and returned to another, or returned at a different time. Irrigated agriculture, industry and domestic water use can each have a blue water footprint.

A green water footprint refers to the amount of water from precipitation that, after having been stored in the root zone of the soil (green water), is either lost by evapotranspiration or incorporated by plants. It is particularly relevant for agricultural, horticultural and forestry products.

A grey water footprint refers to the volume of water that is required to dilute pollutants (industrial discharges, seepage from tailing ponds at mining operations, untreated municipal wastewater, or nonpoint source pollution such as agricultural runoff or urban runoff) to such an extent that the quality of the water meets agreed water quality standards. It is calculated as:

where L is the pollutant load (as mass flux), c_max the maximum allowable concentration and c_nat the natural concentration of the pollutant in the receiving water body (both expressed in mass/volume).