The German Purity Law, also known as "Reinheitsgebot," dictates that only water, malted barley, and hops are allowed as ingredients in beer production. This law, established in 1516, aimed to regulate and maintain the quality of beer by prohibiting the use of other additives or ingredients. By limiting the ingredients to these three, the law ensures that beer is made with natural and traditional components, preserving its purity and authenticity.