Up until just 4 months ago, I did not have a source for gen v in
water, so I used the stuff in alcohol.  I figured that the few
drops that he got from it were so minor that they would not be
able to harm him, and I would put it on my nipples and let them
dry before I nursed him to let him get his dose (his mouth still
stained dark purple, and it worked, so I figure that it must have
worked jsut fine that way.)  The only problem that I ran into was
then I needed to apply it to his diaper area, and the rash had
opened up, then it burned a great deal and was very traumatic for
him.  Now that I have it in water, I call it "purple water" and
he giggles because the cotton swab tickles him.  Before, he would
scream bloody murder and it took my husband holding him down and
my struggling against him as well to apply it.
So, the gen v in water is very useful for topical application on
open skin, otherwise, I can't see much difference.  Having said
that, the gen v in water is not as nasty tasting as the stuf in
alcohol, so it is a little easier to get into the child's mouth.
:)