Bully

You have to do a special errand. Go to Town of Bullworth and go to the Happy Dinner. You'll eventually see the blue X. Go around the back of the diner through the alley, jump over the wooden fence, climb the ladder, and talk to the Townie on top of the building. Then accept the errand and start throwing water balloons at any body. After beating the errand stay on the roof until the heat dies down.
-side note- though water balloons do no damage what so ever, they still pretty fun to throw at people.

Go to Bullworth Town and go next to yum yum and walk straight look to your right and you 'll find a ladder you have to have a blue x first then climb up and talk to the townie then fill a water balloon and throw it at anybody then when you complete the errannd you will unlock water balloons.done

If you still want more info or want to know something else, you should look up an FAQ.

It should be in the Hints and Cheats section.

It'll go into detail on what you want to know.

If you press ctrl + F and put in what you're looking for you'll find it faster.

Hope this helps. :D

The best way is to go to every Yum Yums until a errand shows go to the back and climb up and fill water balloons and THROW them at the townie that is the errand provider.

yeah,you must do the errand for the townie on the rooftop on Town of Bullworth.
after you done, you can make a water balloon from any water source.

There is choclate sign on top and behind yum yum markets climb the barrier and the ladder and you will see an errand icon do the errand and after you finish it you will be able to fill up water ballons and throw them at people