Water in the engine/combustion chamber is not a novel phenomenon. Even humidity has a major effect on internal combustion engine emissions and can thus be considered the first invisibly present emission technology. With modern techniques, the problematic aspects of water, such as corrosion and lubrication issues, seem to disappear, and the benefits of water’s effect in combustion may also be enhanced in the context of EURO 7. The current study examines the literature on the effects of water on diesel combustion in chronological sequence, focusing on changes over the last three decades. Then it analyzes and re-evaluates the water effect in the current technology and the forthcoming Euro 7 regulatory context, comparing the conclusions with current automotive applications and mobility trends, in order to show the possible benefits and prospective research avenues in this sector. Techniques introducing water to combustion could be a major approach in terms of the EURO 7 retrofit mandate, as well as a feasible technique for concurrent nitrogen oxides and particulate reduction.