Water-based paints are diluted with water, while solvent-based paints are diluted with solvents like Mineral Turpentine Oil (MTO). Emulsions are water-based paints while enamels, lustre, and matt finishes are solvent-based paints. Emulsions look better on walls and are ideal for drawing rooms. Solvent-based paints are ideally suited for kitchens and bathrooms since they are water-resistant. Enamels are used on wood and metals.