H2O vapour (not water droplets) causes positive feedback because water molecules absorb infrared radiation very effectively. H2O in condensed droplet form causes negative feedback, due to scattering sunlight back into space and hence cooling the surface below (each water droplet acts as a reflector, which does not happen for water molecules in vapour form).
For the reliable NOAA data set showing a 1% fall in total atmospheric column H2O vapour content since 1948 (not just stratospheric moisture which is misleadingly analyzed in recent efforts to studiously ignore negative feedback for AGW scaremongering propaganda), which is equivalent to a roughly 30% fall in CO2 (cancelling out the 25% rise in CO2 since 1948), see page 58 of the presentation by climatologist Dr Miklós Zágoni: https://nige.files.wordpress.com/2011/02/the-saturated-greenhouse-effect-theory-of-ferenc-miskolczi.pdf The addition of CO2 has increased the cloud cover H2O (negative feedback) at the expense of H2O vapour, which has simply warmed and risen to form cloud.