Water Valley is a census-designated place and former home rule-class city in Graves County, Kentucky, United States.

It was incorporated on April 19, 1884, and had its charter dissolved via court order effective June 20, 2016.

[3] According to the United States Census Bureau, the incorporated city has a total area of 0.6 square miles (1.6 km2), all land.

The racial makeup of the city was 94.94% White, 4.75% African American, 0.32% from other races.

34.8% of all households were made up of individuals, and 18.4% had someone living alone who was 65 years of age or older.