Water Valley is a very small city located in the state of Mississippi. With a population of 3,361 people and two associated neighborhoods, Water Valley is the 88th largest community in Mississippi.

The citizens of Water Valley are slightly less educated than the national average of 21.84% for the average city or town: 13.86% of adults in Water Valley have a bachelor's degree or advanced degree

The per capita income in Water Valley in 2022 was $23,388, which is middle income relative to Mississippi, and low income relative to the rest of the US. This equates to an annual income of $93,552 for a family of four. However, Water Valley contains both very wealthy and poor people as well.

Water Valley is an extremely ethnically-diverse city. The people who call Water Valley home describe themselves as belonging to a variety of racial and ethnic groups. The greatest number of Water Valley residents report their race to be White, followed by Black or African-American. Important ancestries of people in Water Valley include German, English, Irish, Lebanese, and Scottish.

The most common language spoken in Water Valley is English. Other important languages spoken here include Spanish and Italian.