In a society that strives to reduce its environmental impact, water-based coatings are growing in popularity. Historically, solvent-based coatings have out-performed water-based coatings in some service environments, but advances in coating technology have allowed for higher-performing water-based alternatives on the market. This paper will discuss some of the previous misconceptions surrounding water-based coatings and how newer formulations of these materials can provide a multitude of advantages over their solvent-based counterparts. Also, much discussion will be laid out as to how these materials can provide a more sustainable solution while not compromising service life. After reading this paper, the reader will have a greater understanding of these next generation water-based coatings and their benefits. In addition, there will be an in-depth discussion on some of the applications where these materials are now appropriate, including potable water immersion service and exterior environments where top level color and gloss retention performance is coveted.