It is very nice technique to make water drops so that you may apply Layer Styles to any text or object to give water look. It seems that name has been written by real water. Hope you will like this.

1. First of all take a new file of any size, I’m here going to take 560×400 px size with RGB color mode and 72 DPI resolution.

2. Now we have to make a water drop, for this purpose take new layer and pick Brush tool with Hard edges and make a small drop like show below, (don’t worry about the color).

3. From layer panel write 3% in Fill Opacity. This drop would vanish.

4. Now run the command, Layer >> Layer Style >> Drop Shadow and give the following setting.

5. Don’t hit ok, click on Inner Shadow and give the following setting:

6. Again don’t hit Ok, just click on Inner Glow and give the following settings:

7. Once again don’t hit ok, just click bevel and emboss and give the following settings:

8. Before hitting the OK button, you have to save these style, for this purpose click on New Style and give it a name, like stunningmesh-water and then hit ok,

you will get the following:

9. Now take a new layer and fill it with White color. Then Pick Horizontal Type tool and write your desire text. While selecting the Text layer press Ctrl+E to merge it with White layer.

10. Now we are going to Roughen the edges, for this purpose run the command, Filter >> Pixelate >> Crystallize and give Cell Size to 10 and hit ok:

You will get something like this:

11. Now run the command Filter >> Blur >> Gaussian blur and give Radius to 5 and hit ok:

12. Now run the command Image >> Adjustment >> levels or just press Ctrl+L and give the following settings:

You will get something like this:

13. Now we are going to remove the white areas, for this, goto Channel Panel (you can open it by running the command Window >> Channel) and from the bottom of this panel click “Load Channel as Selection” icon , it will select all white area. Press Del key to delete it and press Ctrl+D to unselect and come back to Layer panel again, you will get something like this:

14. Now I’m going to paste the Layer Style which we saved before putting the text. Goto Style Panel and select the last style (stunningmesh-water):

15. You can also add some drops around the text and here it will be the final image: