It works, but it is not necessarily the most effective method. Shooting people is probably a considerably more effective method. You eliminate some of the unwanted people, and will generally scare off the rest. As a general rule people prefer to be alive than dead.
Killing your own people is generally frowned upon on the international stage–especially if conspicuously done. Water can cause injuries, but is generally non-fatal, so is a preferable method (albeit less effective) of crowd control.
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