Add reference to a ajaxcontroltoolkit then write
<asp:TextBox ID="txt_FirstName" runat="server"></asp:TextBox>
<cc1:TextBoxWatermarkExtender ID="txt_FirstName_TextBoxWatermarkExtender"
runat="server" TargetControlID="txt_FirstName" WatermarkText="First Name">
</cc1:TextBoxWatermarkExtender>
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