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For (Ca(OH) 2) (aq) , see limewater. For the application of slaked lime as a wall colorant, see limewash. Calcium hydroxide, traditionally called slaked lime, is an inorganic compound with the chemical formula Ca (OH) 2.It is a colorless crystal or white powder and is obtained when calcium oxide (called lime or quicklime) is mixed, or  slaked  with water. suspension of fine calcium hydroxide particles in water is called milk of lime. The solution is called limewater and is a medium strength base that reacts with acids and attacks many metals. Limewater turns milky in the presence of carbon dioxide due to formation of calcium carbonate, a process called carbonatation :
Straight from wikipedia (Calcium hydroxide) Uses. One significant application of calcium hydroxide is as a flocculant, in water and sewage treatment. It forms a fluffy charged solid that aids in the removal of smaller particles from water, resulting in a clearer product. This application is enabled by the low cost and low toxicity of calcium hydroxide.