Mix together the salt and flour in a large bowl.
Add the water. Knead with your hands until the mixture becomes a dough-like-texture.
On a lightly floured surface, roll out your dough with a rolling pin and use cookie cutters to cut out shapes.
Use a toothpick or something similar to make a small hole near the top of your dough shapes so that when they are dry, you can insert an ornament hook/string/ribbon.
Place the shapes on baking trays.
Preheat the oven to 250 degrees F and bake for 2 hours. If the ornaments still feel soft, bake for a bit longer until hard (but not brown in color).
Once dry (and cooled), decorate with any craft supplies you'd like!