It is also a term, smacking of faint self-contradiction, used commonly in astronomy to distinguish frozen water from other solifdified volatile substances such as carbon dioxide (dry ice), carbon monoxide, ammonia, methane which make up such things as comets and frozen gas giants. Also, perhaps, diamonds. As such, useful wording for your local weather report in such places.

I have never heard the term water snow used, however, nor the derived terms water snowball or water snowman. Perhaps these would serve as a welcome bit of local color if one were crafting a space opera on the outer planets.