Step 1: Analyze the code pattern.
Each letter in "WATER" is shifted forward by 2 letters in the alphabet: \[W \to Y, A \to C, T \to V, E \to G, R \to T\]
Step 2: Apply the same pattern to "HOUSE".
Shift each letter by 2 forward: \[H \to J, O \to Q, U \to W, S \to U, E \to G\]
Step 3: Write the coded word.
The coded word is "JQWUG".