Why does pastis turn cloudy with water? The ouzo effect, with a louche glass you can dilute
Add water to pastis, ouzo or absinthe and the drink turns milky in seconds. Nothing is added: aniseed oil that was dissolved in strong alcohol drops out as tiny droplets once the strength falls to around 30% ABV. This is the ouzo effect, or louche.
Drag a slider to dilute a glass and watch the cloud build, with the strength and alcohol units shown. Vodka is the control.

Pour a glass of pastis, ouzo or absinthe and it looks like pale gold or green glass. Add a splash of cold water and, in a few seconds, it blooms into a soft, milky cloud. Nothing was added except water. So where did the cloud come from?
The cloud is oil that lost its alcohol
Aniseed spirits are flavoured with oils from aniseed, star anise or fennel. The main one is called anethole. Anethole dissolves happily in strong alcohol and hardly at all in water. At bottle strength there is plenty of alcohol, so the oil stays dissolved and the drink is clear.
Add water and the alcohol percentage falls. Somewhere around 30% ABV (it varies with the drink and the recipe) there is no longer enough alcohol to hold all the oil. It leaves the solution as billions of tiny droplets, too small to see one by one, which scatter light and turn the glass cloudy. Chemists call it the ouzo effect, and the French call the same moment the louche. Studies have found the emulsion is stable without any added emulsifier, which is why it lasts for the whole drink and does not separate.
That also means the cloud is a free dilution gauge. If it has appeared, the drink has dropped below roughly 30% ABV.
Why the cloud blooms where the water lands
When cold water hits the spirit, the mix right at the surface of the stream is briefly weak enough to cloud, while the rest of the glass is still clear. That is why a slow drip over a sugar cube makes visible clouds that swirl and thicken, and why a slow pour lets you watch the louche build.
Do the maths before the first sip
The strength after adding water is simple: bottle ABV divided by (1 plus the parts of water). A 45% pastis with five parts water lands at 7.5%. Absinthe at 68% with four parts lands at 13.6%, which is a good reason it is meant to be diluted rather than sipped neat. Neat pours are far stronger than a glass of wine.
The cloud is not a measure of safety, though. The glass holds the same amount of alcohol before and after. Dilution makes it longer and gentler, not lighter in alcohol, so keep an eye on units and pace yourself. If you are driving, the better answer is a no-alcohol aniseed drink or simply cold water.
Why ice goes in last
Anethole is close to solid at cool room temperature (it melts at roughly 21–23°C). A cold glass or ice dropped on neat spirit can make it cloud in lumpy crystals instead of a smooth louche, so the usual advice: pour the spirit, add the water, then ice if you want it.
What the louche is not
It is not a sign of quality or of spoilage. Spirits with plenty of aniseed oil louche heavily and ones with less show only a faint haze. Other drinks that carry dissolved oils can haze when diluted too. And it is not an additive: the oil was in the bottle all along, and water only takes away the alcohol that was holding it.
Try it at home
Pour 25 ml of pastis into a short glass. Add 100–125 ml cold water, slowly, a splash at a time, and watch the cloud form. Taste at one part, three parts and five parts. The flavour opens up as it dilutes, which is part of the point. For an alcohol-free version, a squeeze of lemon over soda with a few fennel seeds steeped in the water gives a hint of the flavour, though no louche, since there is no spirit to take away.