Water of life (also holy water) is the mixture of blood and water that came out of Jesus Christ when they pierced him on the side.
One of the soldiers pierced Jesus’ side with a spear, bringing a sudden flow of blood and water. (John 19:34) "NIV"
The blood is representative of the spirit because the Holy Spirit dwells in the blood. Rather than tell Cain that the soul (the spirit) of Abel cried to me, God said,
Your brother’s blood cries out to me from the ground. (Genesis 4:10) "NIV"
We know that the blood is the life. Since the blood is the spirit, the life is the spirit.
The Spirit gives life; the flesh counts for nothing. (John 6:63) "NIV"
The spirit was rendered homeless immediately Abel's blood was poured out. Hence the spirit cried out to God.
Blood = Spirit
Blood and Water = Spirit and Water
The water is purified by the spirit such that the sum of the water and the spirit is equal to holy water.
Jesus is the Pierced stone, and the hole on the southeastern corner of the Foundation Stone is the injury he sustained when they pierced him. Since the wound is where the blood and the water came from, the hole is a well of water called the Well of Souls.
Holy water from the Well of Souls is a mixture of blood and water flowing from the Pierced Stone (Jesus) to humanity. The spirit in the water gives life to all people on earth and reconciles (heal) the nations of the earth.
He was wounded for our transgressions, he was bruised for our iniquities: the chastisement of our peace was upon him; and with his stripes we are healed. (Isaiah 53:5) "KJV"
This means that the river of the water of life is a mixture of blood and water pouring out of Jesus to humanity. The water of life is the holy water.
The holy water from the Well of Souls is the water Jesus said,
The water that I shall give him shall be in him a well of water springing up into everlasting life. (John 4:14) "KJV"
The water: Holy Water
Well of water: Well of Souls
Well of water springing up: a stream of water or a river
Well of water springing up into everlasting life: the river of the water of life.