The best water-based baby moisturizer is Aveeno Baby Daily Moisture Lotion. It is hypoallergenic, fragrance-free, and contains natural oat extract to help soothe and nourish baby's delicate skin. It is also pediatrician-recommended and clinically proven to be gentle and mild. The Cetaphil Baby Moisturizing Lotion is also really good. It is hypoallergenic, fragrance-free, and clinically proven to be gentle on baby's delicate skin. It is also non-comedogenic, so it won't clog pores.