Water Valley is a city in Yalobusha County, Mississippi, United States.

According to the United States Census Bureau, the city has a total area of 7.0 square miles (18 km2), all land.

As of the 2020 United States Census, there were 3,380 people, 1,336 households, and 818 families residing in the city.

At the 2000 census there were 3,677 people in 1,470 households, including 961 families, in the city.

There were 1,675 housing units at an average density of 238.3 per square mile (92.0/km2).