Water Oak is one of the Red Oaks. It and Laurel Oak are the most prevelant Red Oaks in the south East. They make good lumber, but, as in most Southern hardwoods, the grain is course and wide because they grow so fast. The are also susceptible to heart rot (they live on wet ground) and are frequently attacked by insects (borers). I think that water oak and laurel oak are beautiful woods and have seen many pieces of furniture made from them. Of the two, Laurel is the longest living and usually the better lumber comes from it, but neither are long lived trees. The life expectancy of a Water oak is in the 60 to 80 year range and laurel oak 80 to 100. They live longer, but begin to deteriorate fast after that.
They aren't used for tight cooperage because their tyloses aren't closed like white oak. But they are used for dry cooperage, furniture, flooring, cabinets, panelling and do well inside. Don't use their lumber for outside projects, unless you just have to. The wood isn't rot resistant.