Water absorbs energy and converts the water to 212F water vapor ...and both this energy absorption and the injection of 212F water vapor, counters temperatures that are higher than 212F... the reason for the water. It is to help maintain a stable
low temperature for low and slow cooking. THAT said, the general experience in this particular user audience is that this isn't really necessary in the
WSM. Using sand (or bricks or whatever) instead does not counter higher temperatures,
but as a thermal mass that either absorbs or releases energy, does act as a stabilizing thermal mass. In other words, non-water thermal masses will help prevent dips and spikes in the temperature in your cooker, but will not regulate the temperature (down) for you if you've got your vents too open for the lower temperature that you are trying to cook at. With a non-water thermal mass and properly set vents that keep the temperature low, the cooking works just fine. The last, and only, advantage to water is that it helps keep the atmosphere in the cooker more moist ...
theoretically helping to prevent water loss from what you are cooking. The jury is still out on whether it really helps or not, and the circumstantial evidence among the users here suggests that meat will stay moist without having to have water vapor injected into the cooker. The bottom line is that you can use water, or sand (etc), as your thermal mass and that it's up to you to set up those vents to maintain your target temperature. And obviously, if you want to cook hotter, say at 350F+ for chicken, you should avoid water since it 'tries' to pull the temperature back down, resulting in having to burn more charcoal to try to get the temperature as high as desired.
Brian