Add the water to a small saucepan and sprinkle the gelatin over top. Allow the gelatin to sit and bloom for 2-3 minutes.
Place the saucepan over medium-low heat. Stir until gelatin has dissolved and the water looks clear again.
Remove from heat and allow the mixture to cool but not solidify. (If the gelatin does solidify, just put it back on the heat and stir until it has melted again. Then allow it to cool and keep an eye on it.)
Pour the heavy whipping cream into the bowl of a stand mixer fitted with the whisk attachment. Beat on low speed before increasing to medium speed until soft peaks just begin to form. (Don't walk away here, you don't want to overmix the cream and end up with butter.)
Reduce the speed of the mixer to low and sprinkle in the powdered sugar. Once the sugar is incorporated, slowly add in the vanilla until it's fully mixed in.
Now slowly drizzle the cooled gelatin mixture down the side of the bowl into the whipped cream.
Once all the gelatin has been added, turn up the speed of the mixer to medium and allow it to whip the cream to medium peaks. Use immediately or refrgierate in a covered container for up to 3 days.