Water masers are found in dense molecular clouds closely associated with supermassive black holes at the centres of active galaxies. On the basis of the understanding of the local water-maser luminosity function, it was expected that masers at intermediate and high redshifts would be extremely rare. However, galaxies at redshifts z > 2 might be quite different from those found locally, not least because of more frequent mergers and interaction events. Here we use gravitational lensing to search for masers at higher redshifts than would otherwise be possible, and find a water maser at redshift 2.64 in the dust- and gas-rich, gravitationally lensed type-1 quasar MG J0414+0534 (refs 6-13). The isotropic luminosity is 10,000 (, solar luminosity), which is twice that of the most powerful local water maser and half that of the most distant maser previously known. Using the locally determined luminosity function, the probability of finding a maser this luminous associated with any single active galaxy is 10(-6). The fact that we see such a maser in the first galaxy we observe must mean that the volume densities and luminosities of masers are higher at redshift 2.64.