If it's water, I think it needs to be non-arcing. Otherwise it doesn't look like it can damage steel at a distance. However, that would work like yet another laser like knorke said. By the way, the pressure required to create such a jet would be amazing. :)
Acid would seem sufficiently harmful without arcing. Knorke mentioned he would expect some damage over time. That is a fair point. I wouldn't mind personally if the damage was caused over a short time as it could lead to interesting gameplay. However, if it lacked that, I think it would be far less baffling than seeing the unit spray water. Regarding the intuitivity knorke mentioned, perhaps the acid production could be made more visible by making the unit produce bubbles around it.