yeah, ive had a go on a bike with water bled brakes , there awsome but yes it does start to corrode the seals unless you use distilled water. i have no idea why but it does and also it does cancel the warranty.
DO NOT USE THE DOT FLUID. my mate sent his rear brake off to tarty to get it re-bled and have a braided hose put on, but they phoned him back saying that the complete inside off his brake was ruined because off the fluid. :lol: