Water cutting isn't just water, it's a mixture of super high pressure water and a sand like abrasive. I found some fellows here on the outscirts of town who water cut and have had the cute the last 10 blades I'm working on fron CPM 420V. It's substatially cheaper than laser cutting.
Other differences: with laser cutting I had edge hardening along the cut line; don't have that with the water cutter.
The laser cutter needed more space between the knives and as a gripper on the edges; water needs less, thus less wated steel.
Water seems to cut away more metal. What I mean is that the laser made a finer cut line, as if it were a thinner saw blade in effect. If one were making folders, I'd really be careful with the tolerances.
Oh, another plus with water is they can cut the handles from Micartea or G-11 so I'd have less nasty grinding there to do. Gonna try that next!