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Discover LudwigThe phrase 'waters down' is correct and usable in written English.
It is used when you are describing something that has been weakened, diluted, made less powerful, or made less effective. For example: "The policy was watered down to make it more palatable to the public."
Dictionary
waters down
verb
Third person singular of water down
Exact(58)
Rockfish still cruise its brackish waters, down to the salt.
But the new edition inevitably waters down, just a bit, the charm of the original.
"And as the pressure waters down, it relaxes".Thus pension reform, first flagged as long ago as January, has been postponed until the first quarter of next year.
The 24 March petition is the latest reflection of growing scientific and public interest in so-called "cool corals," which grow very slowly in cold, sunless waters down to 2000 meters (Science, 10 January 2003, p. 195).
This species tends to swim close to the sea floor and can be found from inshore waters down to 170 m deep.
"It waters down the gene pool.
The Senate bill also waters down the "Volcker rule".
It waters down the need to introduce an arbitrator.
Overindulgence leads to indifference, simplicity waters down taste.
The 25 April version waters down Leveson still further.
Recapitalisation, both long- and short-term, waters down the value of existing shares.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com