Land-water segmentation is an important preprocessing step in a number of remote sensing applications such as target detection, environmental monitoring, and map updating. A Normalized Optical Water Index (NOWI) is proposed to accurately discriminate between land and water regions in multi-spectral satellite imagery data from DubaiSat-1. NOWI exploits the spectral characteristics of water content (using visible bands) and uses a non-linear normalization procedure that renders strong emphasize on small changes in lower brightness values whilst guaranteeing that the segmentation process remains image-independent. The NOWI representation is validated through systematic experiments, evaluated using robust metrics, and compared against various supervised classification algorithms. Analysis has indicated that NOWI has the advantages that it: a) is a pixel-based method that requires no global knowledge of the scene under investigation, b) can be easily implemented in parallel processing, c) is image-independent and requires no training, d) works in different environmental conditions, e) provides high accuracy and efficiency, and f) works directly on the input image without any form of pre-processing.