We present here the effects of geometrically constrained environments on the proton transfer reaction of 4-methyl 2,6-diformyl phenol (MFOH) both in the ground and excited states by employing steady-state and time-resolved fluorescence spectroscopy having picosecond and femtosecond resolutions. The nanometersized water pools formed in the ternary microemulsion of n-heptane-aerosol OT-water promote reprotonation of the probe. As we go on increasing the water content up to a certain value in the ground state whereas deprotonation is favored in the excited state. The emission intensity has a complex behavior as the water content is changed in the system. The lower fluidity of confined water within the reverse micelle with respect to the normal bulk water alters the related dynamics of the H-bonded network. These observations are rationalized on the basis of altered ionic water activity in the confined surroundings, i.e., on dielectric constant, ionic mobility, pH, and the favorable orientation of dipoles in the medium. Our observations might be helpful to infer about the characteristics of nanoreactors, which often mimic many biological hydrophilic pockets.