The outcome of water addition in ferroelectric liquid crystal (FLC) has been investigated in uniform and defect-free homogeneous and homeotropically aligned monodomain sample cells from electro-optical and dielectric spectroscopic measurements. The lagging in optical response between nonconducting (spatially variable switching) and conducting (conventional switching) portions of water added FLC sample cell has been observed by frequency-dependent electro-optical studies. The bias-dependent water related new relaxation peak near the conventional Goldstone mode relaxation process has been observed only in the homogeneous alignment and not in the homeotropic one. Further, the significant increment in dielectric anisotropy as well as faster diffusion of water along long molecular axis than short molecular axis has also been monitored. These studies strongly suggest that the distribution of water is anisotropic in FLC medium and could be the reason for new relaxation peak in the water added FLC sample.