The Water Street Hotel in Port Townsend, WA, is described as haunted by the ghosts of the dead, with visitors reporting sightings of men in top hats who disappear through walls when approached and experiencing disembodied footsteps and other paranormal activity. While specific spirits and their origins aren't detailed in the same way as other local establishments, it holds a reputation for supernatural encounters based on guest experiences and historical records of deaths on the property. Some guests have reported seeing figures of men dressed in top hats walking the halls at night. These same figures are said to disappear through walls when approached by a person. Visitors have reported hearing ghostly footsteps, even when the halls are empty. The presence of paranormal orbs has also been reported at the hotel. The Water Street Hotel is acknowledged as a genuinely haunted location, according to lists of real haunted places in Washington. The alleged paranormal activity is attributed to the hotel's history, which includes documented deaths.