Coconut water and coconut milk are two different natural liquids obtained from a coconut. Coconut water is the lightly sweet, clear liquid found inside a young, green coconut. It’s low in calories and fat but rich in electrolytes, making it a popular hydrating drink. Coconut milk, on the other hand, is made by blending the white flesh of a mature coconut with water and then straining it, resulting in a creamy, high-fat liquid commonly used in cooking and baking. While coconut water is ready to drink straight from the coconut, coconut milk is generally a processed product used as an ingredient.