A water powered hose reel operated by household water pressure. The hose reel has a traversing hydraulic motor for use in retrieval of a flexible hose. The hose reel includes a spool carried by and enclosed within an enclosure, the spool having a hub with a pair of flanges at opposing ends configured for proper alignment of the hose during storage, take-up and pay-out of the hose. The enclosure is configured for receiving the spool so as to rotate within the enclosure. A hydraulic motor allows take-up of the hose by use of a reciprocating traversing motor driving a rack attached to the spool by a series of gears. Disengagement of the motor allows for manual pay-out of the hose.