The objective of this work is to study the possibility of obtaining dense parts using water atomized AISI 316L steel powder in the L-PBF process. Despite its irregular, non-spherical, particle morphology, it has a significantly lower cost. 25 samples were produced varying the laser power and the scanning speeds to determine the optimal processing conditions. Additionally, hot isostatic pressing (HIP) was performed after the L-PBF process to further increase densification. Selected samples were subjected to microstructural characterization. The best densification results obtained were for the sample produced with the laser power of 173 W and scanning speed of 600 mm/s, where densifications close to 98% were obtained. HIP post-processing promoted increased densification of samples with closed porosity, allowing samples with densification above 95% to reach values close to 100%. HIP did not promote the closure of open pores. The results indicate that the use of water atomized AISI 316L in the L-PBF process combined with post-processing by HIP can produce dense engineering components and at the same time reduce the production costs of the manufactured components, mainly because it is a lower cost raw material when compared to the commonly used feedstock obtained by gas atomization.