-Water is often the main component of many food products and their stability strongly depends on water interactions with other molecules. In the case of dehydrated products and especially milk powders, their use properties (flow properties, keeping quality and reconstitution properties) are closely dependent on the modes of water binding to the other constituents (proteins and lactose in particular). The water relations of milk powders strongly depend on drying process conditions and on their composition. They are well represented by sorption isotherms. However, to understand some mechanical properties (flowing, caking) it is necessary to take into account the glassy transition phenomenon. The water activity concept, water vapour sorption isotherms and glassy transition are redefined. A brief presentation of methods for characterising water properties and measuring hydration is done. Finally, explanation of the mechanisms of lactose hydration and of its crystallographic changes allows the linking of the use properties of dairy powders to their manufacturing technology.