These talismans are primarily found and mentioned inside Stables. Physically, they are described as large sapphires radiating a cool aura, set into a golden latticework, no bigger than a gaudy necklace.
They were designed to provide fresh clean water for Stable residents and help ensure their survival. Water Talismans can be utilized outside stables and provide an entire town with fresh water. New Appleloosa was given Red Eye's home stable's Water Talisman in exchange for a Balefire bomb. Water Talismans can be corrupted by radiation when damaged, turning the water they provide poisonous and full of radiation as shown with what happened in Stable 29.