Step 1: Open Microsoft Word 2007 or 2010 program on your computer
Step 2: Click on the page layout ribbon & click on Watermark
Now from Watermark option, select an appropriate watermark to apply it over (for this example I have chosen DO NOT COPY 1)
Here you can see the watermark on the document
Now if you want to show watermark with custom text, from Watermark options, click Custom Watermark
A windows will pop up by the name of Printed Watermark. Select Text Watermark option. You can modify Language, Text, Font, Size, Colour, & Layout. Once you have chosen your desired settings Click on Apply and Close.
Here you can see the Custom watermark on the document.
You can even add a picture as a watermark. To put picture as a watermark choose Customer Watermark.
Same pop windows as before will pop up by the name of Printed Watermark. Choose the option Picture Watermark. Click on the button below which says Select Picture and select the picture you want to show as the watermark in the document.
Here you can see the Custom picture watermark on the document.
You can also remove your applied Watermark just by clicking on Page Layout. Select Watermark and click on Remove Watermark button when the watermark is already present in the document.