Entropy refers to the level of disorderliness in a system. The entropy of liquids is greater than that of solids. The entropy of gases is greater than that of liquids.
A process of physical change involving a change of state from solid to liquid or liquid to gas is accompanied by increase in entropy.
However, a change of state involving a change from liquid to solid or gas to liquid is accompanied by decrease in entropy.
Hence, steam condensing to water leads to decrease and not increase in entropy of the system.
