The Water Cycle is crucial for maintaining life as it regulates the distribution of water across the planet. It involves processes like evaporation, condensation, and precipitation, ensuring replenishment of freshwater sources, which are vital for all forms of life. By cycling water, ecosystems are able to sustain plant and animal habitats, promote soil health, and regulate climate. Furthermore, the Water Cycle aids in nutrient transport, helping in the proper functioning of ecosystems and maintaining biodiversity.