[1][2] Named after the Douglas Water, the river which flows through the hamlet,[3] local mining operations provided employment to local people, and the hamlet was bolstered by the Coltness Iron and Coal Company establishing an operation nearby.
There was for many years a junior football team that played in the hamlet, known as Douglas Water Thistle, but they became defunct some time ago.
This was the beginning of the decline for Douglas Water as after then the local amenities, football club, train station and much of the other services in the hamlet closed.
The hamlet today is a shadow of its former self, with many streets lying totally empty where the houses that once stood there having long since been demolished.
Douglas Water was the site for the performance of a play called "The Disinherited" by local people in the 1930s that had been written by the socialist writer and activist, Edward Hunter.