Limewater is a saturated aqueous solution of calcium hydroxide, Ca(OH)₂. When carbon dioxide (CO₂) gas is passed through limewater, it reacts with calcium hydroxide to form insoluble calcium carbonate (CaCO₃), which precipitates out of the solution, causing it to appear cloudy or milky. The chemical reaction is: Ca(OH)₂(aq) + CO₂(g) → CaCO₃(s) + H₂O(l).