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Basically it's someone who always has really sweaty hands.
Example 1:
*Guy 1 has water pockets*

Guy 1: Nice to meet you!
*They shake*

Guy 2: Eww water pockets

Example 2:
Jerry is at Jed's house and they're playing Xbox. Jed hands Jerry the controller and its all sweaty and slippery. Jerry now knows that Jed has Water pockets.
by BrooBee C.J February 15, 2013