The reaction between calcium oxide (CaO) and water (H₂O) produces calcium hydroxide (Ca(OH)₂), which is also known as slaked lime. The chemical equation for this reaction is:
\[ \text{CaO (s)} + \text{H}_2\text{O (l)} \rightarrow \text{Ca(OH)}_2 \text{(aq)} \]
Calcium hydroxide is a strongly basic compound and is used in various applications, including construction (as lime mortar), water treatment, and as a pH adjuster in various chemical processes.