Water Pollution is exclusively created by the Liquid Dump, and reduces Health by 1 for every 10 Water Pollution released per month. Unlike Air Pollution, Water Pollution can be entirely eliminated by the mid-game. Fertilizer and Acid can be managed simply by not making more than is required, Sour Water can be treated in a Sour Water Stripper, and both Waste Water and Toxic Slurry can be rendered harmless in a Wastewater Treatment.
Below are all the recipes, which contain this item. Note, that some of them may be locked behind Research, and not immediately available in your game.