Cream butter in a medium mixing bowl; gradually add 1/4 cup sugar, beating until light and fluffy. Add almonds, water, and vanilla; beat well. Stir in flour and salt; mix well.
Shape 1 teaspoon dough into a 2-inch finger. Repeat procedure with remaining dough. Place 1 inch apart on ungreased cookie sheets. Bake at 300° for 25 to 30 minutes. Remove cookies to wire racks to cool. Roll cookies in powdered sugar.