This idea is more of removing the infinite water source at the blacksmith, that many use for filling their cauldrons and making it a bit more easier for the spread of water around town.
A water tower located between the blacksmith and the tavern, the water tower can hold unlimited water, presented with a number at the input (1 potion bottle is 1 volume of water, so if you dump a full bucket it dumps 3 volume of water).
Pipeage that comes from the water tower to the blacksmith and the tavern (maybe to the farm too, if it gets added and other places that may need water)
At the blacksmith you still would have the water crate but with a water tap above it and for each sec the weapon needs to cooldown it takes 1 volume of water that evaporate, if you leave the water tap open and the water crate is full, it will not drain water from the water tower.
At the tavern a water tap gets added near the cooking stations with a drain so lost water don’t get wasted, the water barrel in the tavern stays (it’s mostly used for storing stew, then for water).
A drawing how i envision it (not a great drawer).
It got a water barrel next to the place where you dump the water, if you ever need water on the fly and it got some platforms so you can teleport your way up to get a nice view.