Recent experiments reporting a very low dielectric permittivity for nanoconfined water have renewed the interest in the structure and dielectric properties of water in narrow gaps. Here, we describe such systems with a minimal Landau-Ginzburg field theory composed of a nonlocal bulk-determined term and a local water-surface interaction term. We show how the interplay between the boundary conditions and intrinsic bulk correlations encodes the dielectric properties of confined water. Our theoretical analysis is supported by molecular dynamics simulations and comparison with the experimental data.