Good cider reading material eh? This is a good start:
It'll give you the answer(s) to several of your questions.
You asked about water; unless you're using frozen juice concentrate or making graff, there's not really a need to add water to cider. That being said, your water should be clean & chlorine/chloromine free. Water chemistry isn't as important in cider as it is in beer. Lots of folkes use bottled water or the treat it themselves in some fashion at home. RO & filtration is pretty standard. A lot also just use tap water with no problems at all. It's really up to you.
As for yeast, yes, a higher attenuating yeast will take your cider drier. The above link/thread will help with that, there's also a list of wine yeast strains & their properties here:
The recipe section may also be useful to you:
For more carbonation, you can increase the amount of priming sugar, just be aware there is a limit: too much & your bottles go boom.
Here's some priming/carbing info you might find useful:
It's for beer, but it works great for cider too.
Hope this info helps. Regards, GF.