Oxygen is not a necessary condition and is really a “poison”. See what it does to cars!
But water is a different beast.
If water isn’t necessary then you would think after 4 billion years of evolution life on Earth would have evolved to not need it, or at least some life. The evolutionary advantage of not needing water would have easily created a huge advantage over life that did.
So we can conclude that water is (probably) necessary for life (that we can recognize).
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