Abstract: This invention is an acoustically transparent low water permeability encapsulant made from an acoustically clear polymer such as polyurethane. High aspect ratio clay nanoparticles are positioned in the substrate in overlapping layers with layers of the substrate interposed. The invention also provides a method for forming an acoustically transparent low permeability encapsulant. The method includes treating high aspect ration clay nanoparticles to make them organophilic. The treated nanoparticles are then mixed in a polymer resin in such a way as to form an intercalated mixture. A curing agent is added to the mixture, and the mixture is allowed to set. When set the resulting intercalated mixture produces an acoustically clear, low permeability polymer coating.