Water-soluble colored pencils, also called watercolor pencils, dissolve easily with water. They can be used wet or dry. They are made from pigments and binders. Lightfastness varies greatly among manufacturers and within certain brands of colors. Lightfastness can diminish greatly when water is added to the pigment. Colors do sometimes change when water is added so color charts should be made so you know what to expect with the colors from certain brands.
Prismacolor Watercolor Pencils are water-soluble pencils that lay down smoothly, but when used with water, can be gritty. The colors complement Verithin and Soft Core pencils. The pigment core is encased in wood and is not color-coded.
Available in sets of 12, 24, and 36
Water-soluble pencils have a 3.4 mm pigment core that layer and blend very well. The colors lay down smoothly but can be gritty when water is added.
Available in sets of 12, 24, 36 and 72; open stock.
Water-soluble pencils that have a firmer lead and can easily be blended together. Once dry, the color is a permanent ink and other media can be used on top of it. These also tend to be gritty when water is added. There are a number of low lightfast pencils in the set. Also available in blocks
Available in sets of 6, 12, 24, 36 and 72; open stock.
Museum Aquarelle is soft and creamy and offers the highest lightfastness rating for water-soluble pencils applied wet or dry. The 3.8 mm pigment core is encased in a hexagonal cedar wood casing and the end tip is color coded. These pencils are super smooth when used wet or dry. No grittiness whatsoever.
Available in a basic set of 12, landscape set of 20 and a marine set of 20; open stock.
I do not own Faber-Castell Albrecht Dürer Watercolor Pencils, but they are supposed to be an exceptional set of watercolor pencils. They contain very high-quality pigments for lightfastness, lay down smoothly, blend easily, no grittiness. The color is supposed to be permanent when dry. The pencils have a 3.8 mm lead that is break-resistant, encased in cedar wood and bonding to help prevent breakage. The entire pencil is color-coded.
Available in sets of 12, 24, 36, 60 and 120; open stock.