Usually when people use the term...
Hard Water Spots
They mean mineral deposits left on the surface, be the surface glass, paint, Fiberglas or some other hard, smooth surface.
When in fact the problem is a particle sitting on top of the surface then it can be washed off or chemically wiped off or clayed off, all three of these approaches are non-abrasive.
Often time a mineral deposit will leave an imprint on/in the surface where it formed and the imprint usually must be removed using some type of abrasive polish, you won't know until you first remove the deposits and then inspect the paint.
Here's a portion of text that talks about water spots taken from this article,
Tracers Tracers - RIDS - Pigtails - Cobweb Swirls - Rotary Buffer Swirls - Holograms - Water Spots - Bird Drooping Etchings - Micro-Marring
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Water Spots - Type I, Type II, Type III
Water Spots are more complex than most people assume because there are different types of water spots. Some water spots are merely mineral deposits on the surface left behind after water with minerals has evaporated off the surface. These deposits can often be washed off the paint using a quality car wash soap. Sometimes these deposits can also leave an imprint in the paint in the perimeter of the spot and in these cases the imprint must be removed using a compound or paint cleaner as it's a defect in the paint, not simply a deposit on the paint. Some sources of water, be it rain with air-borne pollution mixed-in, or sprinkler water from a city water supply or well water, can have corrosive enough elements in it that it will actually eat into or etch the paint leaving a depression or crater in the paint where the water dwelled or dried. This is a Type II water spot and it can only be removed by leveling the surrounding paint by hand or machine with some type of abrasive compound or paint cleaner. Type III Water Spots are primarily a stain in the paint which looks like fading where water pooled and then dwelled for some measure of time. This primarily happens to single stage paints which tend to be more porous and thus will absorb water into itself. If Type III Water Spots are limited to only the upper surface of the paint then they can be removed by abrading the paint by hand or machine with a compound or polish.
Before attempting to remove water spots it is important to first diagnose which type of water spot is affecting your car's paint.
Type I Water Spots
Type I Water Spots are primarily a mineral or dirt deposit laying on the surface of paint. Type I Water Spots can be the results of minerals suspended in city water or well water that are left behind after the water evaporates off the finish. This can happen by washing a car but not drying the water off the paint or if a sprinkler goes off next to the car covering the car with water drop that are not dried off the paint. Type I Water Spots can also be dirt or pollution particles left behind after water from rain or inclement weather evaporates of the finish. Type I Water Spots can also be Type II Water Spots in that the water can leave both a deposit on the surface and an etching in the finish.
Type II Water Spots
Type II Water Spots are actual etchings or craters in the paint because something corrosive in a water source has landed on the paint and was not removed before a portion of the paint was eaten or dissolved by the corrosive substance.
Type III Water Spots
Type III Water Spots are spots that look faded or dull and are found primarily found on single stage paints after a water source lands on and then pools on the paint and is usually left to dwell on the surface for some measure of time before it evaporates or is wiped-off the surface.
Type I and Type II Water Spots
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Originally Posted by /////AMG
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