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Carbon dioxide (CO₂) turns lime water (Ca(OH)₂ solution) milky due to the formation of calcium carbonate (CaCO₃). This reaction is used as a test for the presence of carbon dioxide. Ca (OH)₂ + CO₂ → CaCO₃ ↓ + H₂O The white precipitate of calcium carbonate (CaCO₃) causes the milky appearance in lime water. If excess CO₂ is passed, the milky solution turns clear due to the formation of soluble calcium bicarbonate (Ca(HCO₃)₂).