The United States-led boycott was hardly noticed as the top four water polo teams for almost 30 years had been Hungary, Yugoslavia, Italy, and the Soviet Union, all of whom were in Moscow. As at all recent Olympics, the swimming, diving, water polo, and modern pentathlon swimming were held at the same site, the indoor Olympic Pool at the Olympiysky Sports Complex, or the Plavatelny Basseyn, Sportivny Kompleks Olimpiysky in transliterated Russian.
The format was precisely the same as in 1976. Twelve teams competed in three preliminary round-robin pools of four teams each, with the leading two teams in each pool advancing to a round-robin medal round, and the others competing in a consolation pool. In the final rounds early round match results were not carried over.