Woolly garment's stain turned water hazy (8)
I believe the answer is:
knitwear
'woolly garment's' is the definition.
(woolly garments are knitted)
'stain turned water hazy' is the wordplay.
'stain' becomes 'ink' (ink can stain or dye things).
'turned' shows that the letters should be reversed in order.
'hazy' is an anagram indicator (I've seen this in other clues).
'ink' written backwards gives 'kni'.
'water' is an anagram of 'twear'.
'kni'+'twear'='KNITWEAR'
(Other definitions for knitwear that I've seen before include "Woollens" , "Cardigans, jerseys, etc" , "Woollen items" , "such as often goes over shirts and blouses" , "Woollen clothing" .)