A biofilm is a layer of microbes that have aggregated to form a colony. The colony attaches to a surface with a slime layer which protects the microorganisms, promoting their growth and survival. Biofilms occur in various environments such as soils, sediments, wastewater, water pipelines, water purifying systems, cooling water systems, medical devices, archaeological monuments, marine vessels, and hospitals. Biofilms may induce adverse effects such as fostering drug-resistant strains. Here, we review biofilms with focus on their formation, occurrence in water systems, impact, microbial interactions, and characterization methods. Communication includes cell-to-cell interactions by quorum sensing, interactions mediated by flagella, gene, and signaling molecules, and interactions mediated by extracellular polymeric substances. Characterization methods comprise surface-enhanced Raman scattering spectroscopy, confocal laser scanning microscopy, scanning electron microscopy, fluorescence microscopy, sensors, and metagenomics analysis.