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Long story short, it was a controversy that involved Bill and Hillary Clinton. Back in the late 1970's, they joined with a couple other people to invest in a land development in Arkansas- the development was near a river and was thus named "Whitewater". The other people in the venture wound up doing some illegal stuff that eventually got them imprisoned (one guy basically made up his own fake bank and started giving himself loans).

The controversy is over how involved were the Clintons in the investment (they claimed to be "passive partners"- meaning they let the other guys run everything), and whether or not they knew about or were involved in any of the subsequent illegal activities.

A Republican lawyer named Ken Starr was officially appointed to investigate the incident and was unable to prove that the Clintons had done anything wrong in the Whitewater fiasco (however, there are still Republicans who insist the Clintons did in fact do illegal things). Starr did find that Bill Clinton had lied about something else (having an extra-marital affair) while testifying, and the Republican-controlled Congress was able to impeach, but not convict, Clinton in 1998.

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Q: What was whitewater?
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