Although it has become more common for a woman to give birth at the hospital rather than at home with a midwife, studies have shown that a home birth, when done correctly, is actually safer than delivering your baby at the hospital.
Water birth is an excellent option because it is considered a gentle and completely natural way to give birth. Whereas in hospital deliveries it is normal for the mother to experience pain, extreme discomfort, and to be given an epidural for the pain, water births allow the mother to be more comfortable, relaxed, and to experience the birth on a more emotional and spiritual level. The warm water relaxes the mother’s muscles, supports her weight and allows for the baby come out gently and naturally rather than being pushed or helped out by the foreign hands of a doctor. Since the baby has spent 9 months in warm amniotic fluids, the transition from the womb to the outside world is a subtle and soothing one.
Babies are born with a natural Dive Reflex, which allows them to block their throat so that they don’t swallow any water. This keeps them safe for the few moments that they experience under water after they are born. An experienced midwife will also be present during the water birth to aid in the process.

If you want a natural birth I'd opt for the WATER BIRTH. It is a more natural form of pain relief and you can get in more positions etc. But I'm an epidural girl and I much prefer having a restful couple of hours before baby is born so I am rested to push and then enjoy my baby!