The film's theatrical release has been subject to repeated delays, with the latest occurring on July 23, 2020.

Filming concluded in late September 2020 after over three years of shooting. Preliminary shooting for the film started in Manhattan Beach, California, on August 15, 2017, followed by principal photography simultaneously with Avatar 3 in Wellington on September 25, 2017. However, the addition of three more sequels (to the first one) and the necessity to develop new technology in order to film performance capture scenes underwater, a feat never accomplished before, led to significant delays to allow the crew more time to work on the writing, preproduction, and visual effects. Cameron, who had stated in 2006 that he would like to make sequels to Avatar if it was successful, announced the first two sequels in 2010 following the widespread success of the first film, with The Way of Water aiming for a 2014 release. New cast members include Kate Winslet, Cliff Curtis, Edie Falco, Jemaine Clement, and Brendan Cowell. Cast members Sam Worthington, Zoe Saldaña, Stephen Lang, Joel David Moore, CCH Pounder, Giovanni Ribisi, Dileep Rao, and Matt Gerald reprise their roles from the original film, with Sigourney Weaver returning in a different role. Cameron is producing the film with Jon Landau, and is writing the screenplay with Rick Jaffa and Amanda Silver, which is based on a story all three wrote with Josh Friedman and Shane Salerno. The sequel to Avatar (2009), it is the second installment in the Avatar film series.

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