Were did Water go?

[Atoli]

Cure is apparently related to water in some fashion (in our imaginations I suppose).

Yep, just in our imagination.
Was tested by several people and water equipment did not enhance healing potency, so water really left the players

Mobs still have it though, so maybe it's the same as with crystals and they need it for something..like..changing the tides so the moon will fall down