Update March 2019: See below for the steps for saving as XML and deleting it that way. NOTE: Make a copy of your document and work on the copy.
Update February 2013: If the watermark still won’t delete, trying saving the document as XML - see Amy’s instructions in the Comments (), and the following update immediately below. Repeat for all other sections that have a stubborn watermark that you can’t remove.Press the Delete key to remove the watermark.Click to select the watermark (you’ll see colored selection handles around the watermark text when it’s selected).Move your cursor over some of the letters in the watermark until it turns into a 4-way arrow.Double-click inside the section’s header to open it.Watermarks have always been stored as part of the header in Word, so: Word 2007 document with a stubborn ‘DRAFT’ watermark that won’t budge, despite going to the section and trying to remove it the usual way ( Page Layout tab > Watermark > Remove Watermark). Here’s one I solved for a work colleague… Problem
