ALMA observations with angular resolution in the range ∼20–200 mas demonstrate that emission at 268.149 and 262.898 GHz in the (0,2,0) and (0,1,0) vibrationally excited states of water are widespread in the inner envelope of O-rich AGB stars and red supergiants. These transitions are either quasi-thermally excited, in which case they can be used to estimate the molecular column density, or show signs of maser emission with a brightness temperature of ∼103–107 K in a few stars. The highest spatial resolution observations probe the inner few stellar radii environment, up to ∼10–12 R* in general, while the mid resolution data probe more thermally excited gas at larger extents. In several stars, high velocity components are observed at 268.149 GHz which may be caused by the kinematic perturbations induced by a companion. Radiative transfer models of water are revisited to specify the physical conditions leading to 268.149 and 262.898 GHz maser excitation.