1. On the top Microsoft Word Menu bar click ?Insert? > ?Picture? > ?Clip Art?
2. Choose a picture to insert into your document.
3. Click on the picture to get handlebars around your picture, then right click and choose ?Format Picture.?
4. Under the Picture tab click the down pointing arrow next to ?Image Control Color? and choose ?Washout.?
5. If needed, adjust the brightness and contrast in the same box. The higher the brightness number, the dimmer the picture becomes, to more resemble a watermark.
6. Click on the ?Layout? tab in the same box, and chose ?Behind Text.? Now click the ?Advanced? button and then take the check mark out of the box that says ?Move object with Text? and click ?OK? and ?OK? again.
7. Now you can type your word document over the picture and you will have a Watermark.