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The cosmic cycle has consequences for souls. Since souls are made of fire, water brings the death of souls. This has large consequences for human ethics and happiness, and this seems to me to have been an important part of Heraclitus' theory.
Heraclitus uses water in a few analogies. Fore example, he shows that salt water is both pure and impure -- for fish, pure; for humans, lethal. Also, pigs delight more in mud than in pure water. These analogies serve as proofs or illustrations of doctrines (like the harmony of opposites).
The most exciting analogy using water is the river. Different versions of the so-called 'river fragment' exist. I take B12 to be the authentic version. It illustrates Heraclitus' idea of stability-through-change (see B84). The river is constantly changing as the waters flow; at any given moment, the water at one location will be different than it was the previous moment. And yet we call it the same river. In fact, if the water stopped flowing, the river would not longer exist. Like fire, the river is dependent upon change for its constant existence.