Abstract: A label system having an unique label stock. The label stock includes a water-reducible ink system for forming a water resistant ink label and a scuff resistant protective, clear coat layer. A label carrier, formed from non-absorbent paper or plastic, receives the water resistant ink label. In the preferred embodiment, a heat-activated adhesive is applied to the surface of the color coat layer for transferring the label from the label carrier to the substrate. The heat-activated adhesive has an activation temperature less than the distortion temperature of the label carrier so as to not distort the image during transfer. A heat-activated, cross-linking agent may be added in at least one of the color coat and the protective, clear coat to improve water-soak resistance. The heat-activated, cross-linking agent has an activation temperature of greater than the activation temperature of the adhesive.