Waterproof walking shoes

Men's? Women's?

What you want to look for is any shoe that is Gore-Tex lined (or similar waterproofing fabric, although Gore-Tex is the most popular). Many brands will carry shoes that have such a feature, one that comes to mind is Ecco (and not just their hiking shoes but their walking/casual shoes too). Shoes that have such a feature will probably note so in the name with the letters "GTX" or "GT-X" following the name of the shoe. And because Gore-Tex is a copyright and is itself a company separate from the shoe manufacturer, you will often see the gore-tex name and logo on the shoe. For example:

http://www.zappos.com/ecco-sport-espinho-gtx-titanium-dark-shadow

Let me make a bold suggestion... whatever shoe you normally wear on a daily basis will be fine. Unless you purposefully jump in puddles, your feet will remain dry.

For comparison, I lived in western Europe for four years. I walked nearly every day with my dog and went hiking regularly, all seasons of the year in all weather conditions, never wearing any particular kind of waterproof shoe. In perhaps thousands of hours of outdoor walking, my shoes got soaked through to the feet exactly twice. Once, when I had to jump into a canal to pull out my dog, and again when I got caught in an unexpected Alpine deluge near the summit of the Alpspitze. Quite simply, it usually doesn't rain hard enough in north western Europe to penetrate your shoes, and in a city, you have ample chances to duck for cover should a rare heavy downpour occur.

I usually go on Zappos and filter on waterproof. The Gortex lining really does make a waterproof shoe/boot.
Zappos has free shipping both ways. They have a 30 day return period. I order lots of shoes from Zappos. Then I wear them around the house looking for pinch points and slide points. I make my choice and send the rest back.
I echo the Ecco shoes. I'm a big fan of Merrell as they make shoes for athletic women (wider shoes, muscular calves). Clarks are nice if you have narrower feet (like the Clarks Wave) . I like their shoes but have found their heel too wide for my foot if I get their wide width.
You can also waterproof leather on non waterproof shoes. This makes them water resistant which might be enough. Especially if you wear wool socks underneath. Wool is less abrasive when wet.

Good point on waterproof vs. water resistant. An actual waterproof shoe, either by means of gore-tex or similar lining, or something like those rubber rain boots, mean you can literally submerge your foot in water (obvious not beyond the top of the shoe) and no water will get into the shoe. Water resistant helps keep out water, say if you're walking through wet grass or rain, but you can't submerge it and not get wet.

My regular shoes are in fact gore tex lined (and no they are not hiking boots) and I make it a point whenever buying shoes, to find a model that is (it's usually not SO much more expensive than a similar non goretex lined model) because after all, if it's not cost prohibitive, why not get something that will ultimately work in all conditions. Case in point, not all waterproof shoes are hiking boots, trail shoes, or athletic/casual shoes. Check out these dress shoes from Ecco:

http://www.zappos.com/ecco-harold-gtx-tie-black

Of course, if you are on a budget, then by all means, just wear your regular shoes and the "probability" of you needing true water proofing will likely be low. But if you are in the market, then shoot for something that will last you through all conditions.

DH and I both have Ecco walking shoes with Goretex that we bought in London England. They are great for cooler,wet weather.

For extra water resistance, I'll rub in some Sno-Seal on the outside of boots. Its a heavy waxy coating, like Vaseline. Other things like mink oil will also help keep leather from being saturated. But with shoes in the rain, water will get in from the top no matter what you do.

Sno-seal and mink oil will waterproof the leather but it will also change the look. The leather darkens significantly and may take on an uneven appearance.
Sno-seal is easy to apply though. Just rub it on and use a hair dryer to melt it in.
That is something to consider though - almost all after market waterproof coatings change the appearance of the product.

Thank you for all the replies. I'll have to look up your suggestions. I'm looking for women's shoes. My friend said to wear something warm and waterproof. I'm also going to layover in Iceland (mostly city walking) so I'm trying to pack as few items as possible since most of what I bring will probably be bulky.

When I asked at the walking-shoe-store they recommended Clarks because of how the seams are made waterproof. I found a pair of Clark Waves for $10 at the thrift shop supporting our local schools and have worn them on a number of trips; when they wear out I might even buy a new pair at retail.