The normalized difference water index (NDWI) of McFeeters (1996) was modified by substitution of a middle infrared band such as Landsat TM band 5 for the near infrared band used in the NDWI. The modified NDWI (MNDWI) can enhance open water features while efficiently suppressing and even removing built‐up land noise as well as vegetation and soil noise. The enhanced water information using the NDWI is often mixed with built‐up land noise and the area of extracted water is thus overestimated. Accordingly, the MNDWI is more suitable for enhancing and extracting water information for a water region with a background dominated by built‐up land areas because of its advantage in reducing and even removing built‐up land noise over the NDWI.
The Modified Normalized Difference Water Index (MNDWI) uses green and SWIR bands for the enhancement of open water features. It also diminishes built-up area features that are often correlated with open water in other indices.
Generic Formula
Formula by Sentinel-2 bands
Green = pixel values from the green band
SWIR = pixel values from the short-wave infrared band
Visual or digital interpretation of the output image/raster created is similar to NDVI
-1 to 0 - Bright surface with no vegetation or water content
+1 - represent water content
Reference
Xu, H. "Modification of Normalised Difference Water Index (NDWI) to Enhance Open Water Features in Remotely Sensed Imagery." International Journal of Remote Sensing 27, No. 14 (2006): 3025-3033.