Place avocado, olive oil, lime juice, garlic powder, dried parsley, sallt, black pepper, and water in a high-speed blender or food processor.
Blend until smooth and creamy. Stop to wipe down sides and continue blending, if needed. Add extra water if needed to reach desired consistency.
Store in an airtight jar or container in the refrigerator for 2-3 days. Shake before use.
To prevent browning on the top, place a piece of plastic wrap right on the surface of the dressing and then cover it with an airtight lid or top.
Spice and herb substitutions: One fresh garlic clove can be substituted for dried garlic. If using fresh, the dressing should be stored no longer than 3 days. You can substitute the dried parsley with fresh herb by using 1.5 teaspoons of freshly chopped parsley.
Olive oil substitution: Any neutral oil can be used, avocado oil would make a great sub here.