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Water essence2
Water essence1

Water essence is created in an Essence Refiner. It can also be obtained from killing the Water Guardian boss.

Making Water Essence

The materials required for the production of Water Essence are;

The Arcane Ash goes in the center, with the remaining items surrounding it. You will also need essence (about 5 Vinteum Dust's worth) from an Obelisk that has to be linked to the Essence Refiner using a Crystal Wrench.

Water Essence is a component of the Battlemage Circlet, which is part of the Battlemage Armour Set.