Water density will have an effect on the ‘thrust’ on the rocket launch. Density is the substance’s mass per unit of volume. The symbol most often used for density is ρ, although the Latin letter D can also be used. Mathematically, density is defined as mass divided by volume.
Have a look at this video: GCSE Physics – Density #26
Check out the effect of water density on a Water Rokit launch in this video: Water Rocket Liquid density experiment