Drinking or crafting requires clean water, and buying that can be expensive, so the best idea is to buy and use a Kettle to produce clean water. Kettles can be bought from experienced Engineers or their vendors.

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The next part will be to gather some water. For this, you will need an item like a pitcher or water skin and any type of water source like a barrel, lake, sea, etc. Double-click on such an item and target the water source. Remember that such places usually contain dirty and contaminated water that can cause some serious health problems.

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When both needed items (water + kettle) are obtainable, you can double click on Kettle and the menu like this will open:

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Then move the pitcher or any other container with water to the free slot of your kettle:

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Before you will be able to click apply and boil the water, you need to find a place with a fire source in order to boil it. It could be some kind of oven or fire like this:

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After clicking apply, the process of boiling will start and can be observed by moving the cursor over your kettle:  

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After Boiling is completed water will be purified and can be used for drinking or crafting.

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Additional info:
–	There are some legends about places with clean water that do not demand boiling
–	Not every well contains clean water!
–	Clean water is required for crafting