Water balance refers to the relationship between the amount of water entering and leaving a specific area, such as a watershed or a body of water. It is determined by factors like precipitation, evaporation, and water usage. A positive water balance occurs when inflow exceeds outflow, while a negative balance happens when outflow surpasses inflow. Maintaining a healthy water balance is crucial for ecosystems, agriculture, and human consumption. It helps ensure that plants and animals have enough water to thrive. Additionally, understanding water balance can aid in managing resources and addressing issues like droughts and floods, which can impact communities and the environment.