Smart watch 3
Inadvertently I pressed the button to make my watch waterproof. I cannot remove this setting. If I do a watch reset will that get the watch back to normal settings?
Apple Watch Series 3, watchOS 5
Just rotate the digital crown counterclockwise several times to turn off Water Lock.
Water Lock does does not make your watch water proof. It simply disables the touch screen, so its not accidentally pressed by water pressure during swimming activities.
The Watch is water resistant, not water proof, whether the Water lock option is engaged or not.
See here: About Apple Watch water resistance - Apple Support