Issue

Cannot remove a watermark in Microsoft Word 2010. Normally to remove a watermark you go to Page Layout > Watermark > Remove Watermark. But in this particular case this did nothing.

Resolution

It seems that in this case the watermark was part of the header. To remove I had to double lick on the header, then select the watermark and press delete key on the keyboard.

Windows 7 SP1
Microsoft Word 2010