Fairy Water is a magical liquid from Dragons' Den in Videoland. It is infused with powerful good magic that can counteract curses and other evil magic.
Kevin Keene and Princess Lana once purchased a bottle of Fairy Water from a shopkeeper, which Lana used to help Simon Belmont remove the Cursed Necklace. Dragon Lord then used the rest of the Fairy Water to remove the necklace when Simon threw it around his neck.
Fairy Water is based on the item of the same name from Dragon Warrior, which repels enemies when used.