Since you already confirmed you have a leak don't put oil in it or run it. If the water is coming out the oil pan drain plug?....you now know it is in the crankcase....not in a combustion chamber. Are the valve covers off? You need to check the top of the heads in the spring seat area. Your looking for water or bubbles streaming along and down the drain hole passages. Can you pull the oil pan off ? If you can you might be able to see where the water is coming from underneath. I had one block once with a pinhole in a cylinder down low in the cylinder......drove me nuts trying to find it.....
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