Although Word 2010 includes predefined watermarks, you aren’t limited to them. You can create your own custom text watermarks. You can even turn your own pictures into watermarks and add them to your documents.

To turn a picture into a watermark in Word 2010:

  1. On the Page Layout tab, within the Page Background group, click Watermark.
  2. Click the Custom Watermark option.
  3. Click Picture watermark, and then click Select Picture.
  4. Select the picture that you want to use as your watermark. Click Insert.
  5. Select a percentage under Scale to insert the picture at a particular size.
  6. Select the Washout check box to lighten the picture so that it doesn’t interfere with text.

Word 2010 automatically applies the picture you selected as the watermark.