Water Valley is a city in Yalobusha County, Mississippi, United States. The population was 3,392 at the 2010 census.
According to the United States Census Bureau, the city has a total area of 7.0 square miles (18 km2), all land.
At the 2000 census there were 3,677 people in 1,470 households, including 961 families, in the city. The population density was 523.2 people per square mile (201.9/km2). There were 1,675 housing units at an average density of 238.3 per square mile (92.0/km2). The racial makeup of the city was 57.87% White, 40.74% African American, 0.33% Native American, 0.16% Asian, 0.22% Pacific Islander, 0.19% from other races, and 0.49% from two or more races. Hispanic or Latino of any race were 1.20%.
Of the 1,470 households 30.0% had children under the age of 18 living with them, 39.0% were married couples living together, 23.2% had a female householder with no husband present, and 34.6% were non-families. 31.8% of households were one person and 16.2% were one person aged 65 or older. The average household size was 2.43 and the average family size was 3.07.