Given that approximately 80% of blood is water, we develop a wireless functional near-infrared spectroscopy system that detects not only the concentration changes of oxy- and deoxy-hemoglobin (HbO and HbR) during mental activity but also that of water (H2O). Additionally, it implements a water-absorption correction algorithm that improves the HbO and HbR signal strengths during an arithmetic task. The system comprises a microcontroller, an optical probe, tri-wavelength light emitting diodes, photodiodes, a WiFi communication module, and a battery. System functionality was tested by means of arithmetic-task experiments performed by healthy male subjects.