The annual festival in Spain featuring a grand water fight is the Las Fallas festival. This vibrant celebration includes a culmination of events, where participants engage in large-scale water battles, symbolizing cleansing and renewal. The festival also features intricate sculptures, fireworks, and communal meals, creating a lively atmosphere of community bonding and tradition. While the water fight is a highlight, the overall festival emphasizes creativity, cultural identity, and the joy of shared experiences, making it a cherished cultural observance in Spain.