In an era of fluoride toothpastes, water hydridation provides a modest benefit for children's teeth, but does not shrink inequalities in dental health between rich and poor communities.
In areas where natural levels are low, floride has been added to the water to combat tooth decay.
According to the UK government, about 6 million people in England are covered by water fluoridation.
Some areas are looking at introducing the approach.
It has proved controversial despite the support of all of the UK chief medical officers. Many studies examining the impact of water fluoridation were conducted before toothpaste was a household staple.
Researchers say that the benefits of water fluoridation are smaller than previously thought.
"We are aware of a number of areas that are looking at implementing water fluoridation, so it's very much a live issue at the moment."
The team looked at two areas of Cumbria, one without water fluoridation and the other where fluoridation had only recently resumed.
Babies who were conceived after this point in time were recruited in both areas because they had not previously been exposed to fluoridated water.
The experts looked at the milk teeth of the younger group at three and five years of age, and the adult teeth of the older group at seven and 11 years of age.
According to the results from the younger cohort, 17.4% of those living in fluoridated areas had decayed milk teeth, compared to 21.4% for those in areas that did not have water chloridation.
The team took into account factors such as age, sex and deprivation to find that the odds of decay for those in the water fluoridation group were 26% lower.
There was no evidence that the older children were affected. It's possible that not enough time had passed for the adult teeth to develop, so this may be an important role for fluoride exposure in the womb.
The team said that the number of teeth that were missing or filled was lower in fluoridated areas for younger and older children.
According to the researchers, further analysis shows that water fluoridation is cost effective.
The study didn't find any evidence that water fluoridation reduces dental health inequalities between wealthier and more deprived communities. The team says the younger group should be assessed for fluorosis at age 11.
Prof Mike Kelly is a senior member of the research team from the University of Cambridge. He said that the decision could be made on the basis of the most up-to-date information.
Eddie Crouch is the chair of the British Dental Association.
They have tried and tested policies that can save money and improve oral health. There is no will to implement them.