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A bottle of Iranian rose water. Rose water is a flavoured water made by steeping rose petals in water. It is the hydrosol portion of the distillate of rose petals, a by-product of the production of rose oil for use in perfume. rose water ointment is occasionally used as an emollient, and rose water is sometimes used in cosmetics such as cold creams. Medicinal use-Ayurveda: In India, rose water is used as eye drops to clear them.