An emulsion is provided for defoaming water used in processing of various products such as cellulose or wood-based products or in food processing which is formed by reacting a fatty acid with a compound selected from the group consisting of ammonia, sodium, potassium and combinations thereof so as to form a water soluble soap, dispersing the water soluble soap in water and homogenizing the dispersed water soluble soap with hydrophobic oil or hydrocarbon oil to produce the emulsion. Methods for preparing the emulsion and using the emulsion are also provided. The emulsion is advantageous in that it can improve water resistance and/or reduce the use of water resistant additives during processing of cellulose or wood-based products or food-grade products.