The present research is as a continuation of the authors' previous research of composite material and practical application of composite material largely connected with water. The aim of present study was to esablish certain functional properties of the material in water medium. Water permeability, absorption and swelling of the composite material after being exposed to water for certain period were determined. Water absorption, permeability and swelling of the composite material showed close correlation with polymer reactivity. Molding pressure, temperature and the distribution of rubber particle sizes also demonstrate a direct influence on the water absorption and permeability of the composite material. The obtained results are useful for the practical application of selected composite material with desirable and predictable functional properties.