This article presents a brief overview of an important area of neutron scattering: the general principles and techniques of elastic, quasielastic and inelastic scattering from a system composed predominately of incoherent scatterers. The methodology is then applied to the study of water, specifically when it is confined in nanometer-scale environments. The confined water exhibits uniquely anomalous properties in the supercooled state. It also nourishes biological functions, and supports essential chemical reactions in living systems. We focus on recent investigations of water encapsulated in nanoporous silica and carbon nanotubes, hydrated water in proteins and water or hydroxyl species incorporated in nanostructured minerals. Through these scientific examples, we demonstrate the advantages derived from the high sensitivity of incoherent neutron spectroscopy to hydrogen atom motions and hydrogen-bond dynamics, aided by rigorous data interpretation method using molecular dynamics simulations or theoretical modelling. This enables us to probe the inter-/intramolecular vibrations and relaxation/diffusion processes of water molecules in a complex environment.