When biological matter is irradiated by charged particles, a wide variety of interactions occur, which lead to a deep modification of the cellular environment. To understand the fine structure of the microscopic distribution of energy deposits, Monte Carlo event-by-event simulations are particularly suitable. However, the development of these track-structure codes needs accurate interaction cross sections for all the electronic processes: ionization, excitation, positronium formation and even elastic scattering. Under these conditions, we have recently developed a Monte Carlo code for positrons in water, the latter being commonly used to simulate the biological medium. All the processes are studied in detail via theoretical differential and total cross-section calculations performed by using partial wave methods. Comparisons with existing theoretical and experimental data in terms of stopping powers, mean energy transfers and ranges show very good agreements. Moreover, thanks to the theoretical description of positronium formation, we have access, for the first time, to the complete kinematics of the electron capture process. Then, the present Monte Carlo code is able to describe the detailed positronium history, which will provide useful information for medical imaging (like positron emission tomography) where improvements are needed to define with the best accuracy the tumoural volumes.