Off topic, sorry.
Some buddies of mine ended up calling the CG after unsuccessfully trying to start their Honda for about a half hour after coming up from a dive. CG sent a 41' MLB which took them in tow. After about 5 miles (about halfway back to the dock), they realized they were using a cord with the jetski kill switch key. Back at the dock (and after the CG left) they swapped the key and the motor fired right up.
Back on topic:
Stevie: Water in fuel probably won't cause much damage on a carbureted 4-stroke, as long as you can get the thing fired up and dried out. On a 2-stroke it will cause spotty oiling which could score cylinders and deform rings, but it's pretty unlikely at non-started rpms I would think. Don't know what it will do to injectors, but I bet it wouldn't be good for them.
Easy way to tell if you're sucking water is to disconnect the fuel line at the motor and smell what comes out. Pump some fuel (using the fuel bulb) into a glass container and let it sit for a bit (that will also tell you if you have a clogged fuel line.) Water and fuel will stratify.
If you have a water separating filter installed, remove it, dump it out, and reinstall it (or replace it.) It's possible that you've filled the thing up with water and it won't let anything through. A look at the bowl will tell you if you're getting water and fuel in (water sits in the bottom of the bowl.)