The formation of ADP and inorganic phosphate from ATP and water is an example of a hydrolysis reaction.

Here's why:

* Hydrolysis means "breaking down with water". In this reaction, a water molecule (H₂O) is used to break the bond between the terminal phosphate group of ATP and the rest of the molecule.

* The water molecule donates a hydrogen ion (H⁺) to the phosphate group, forming inorganic phosphate (Pi), and the remaining hydroxyl group (OH⁻) attaches to the ADP molecule.

The reaction can be represented as:

ATP + H₂O → ADP + Pi

This reaction is exergonic, meaning it releases energy. This energy is used by cells to power various biological processes.