Sacred water is also called Holy Water or Consecrated Water by other practitioners of Witchcraft. 
And is a relatively new addition to Witchcraft and personally I don't think you really need to create it this way at all you can simply bless and consecrate it without the following technique. Several books out there tell you to use Bottled Spring Water to create your Sacred water. But I prefer to use either Sea water or Rain water opposed to going out and buying bottled water. I mean what is the point of adding sea salt to water already taken from the sea. As long as the water you collect is not too polluted it should be fine.

How to create Sacred Water.

Items needed:

Water i.e. Rain water, Clean River water, Spring water (bottled or not), Sea water. Put whatever kind of water you use in a glass bottle.
Ceramic bowl. (Always try to use objects made from natural substances, opposed to plastics in magic)
Sea or Rock Salt.
Spoon or some kind of stirring implement.

On the night of a full moon go outside under the moonlight with your water and salt. Bring yourself to ritual consciousness. Pour the water in the ceramic bowl. Pick up the salt hold it up in the sky and let the moons rays penetrate the salt. Say "By my will I now consecrate this salt may it assist me in my magical work." Pick up your bowl of water and hold it up in the sky and let the moons rays penetrate the water and say "By my will I now consecrate this water may it assist me in my magical work." 

Now take a large spoonful of salt and put it in the bowl of water and stir the salt in till it dissolves. Hold the bowl of water up in the sky and say "By my will I now consecrated this sacred water may it assist me in all my magical endeavors."

To finish say "So it is Done!"

Take the bowl of Sacred water back inside and pour it in another glass bottle and label it.

* If you have used Sea water use a similar procedure as above. Take the bowl of sea water outside under the full moon and say "By my will I now bless and consecrate this Sacred Water may it assist me in my magical work." "So it is done". Place in a separate bottle and label.

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Murray Byfield © 2000-2002