A mathematical model of water-induced hydraulic fracture propagation is introduced in the paper. The main point of the proposed model being compared to the existing ones is the correct asymptotic behavior: the classical models of hydraulic fracture propagation being implemented for solving the problem of water-induced hydraulic fracture lead to infinite fracture growth. We use a special method of taking the leak off into account to get around this issue. It includes the analysis of poroelastic effects in the vicinity of the fracture. Applying this method to solve the problem of water-induced hydraulic fracture propagation a following result can be obtained: the fracture continues to grow as long as the leaks are less than the amount of fluid injected. Nevertheless, there is a moment when the leaks become equal to injection and thus the fracture growth stops. So the fracture length becomes a bounded function of time and the upper limit of it may be calculated and used in reservoir development as a final length of water-induced hydraulic fracture.