Water tends to break down the adhesive properties of Tamiya paint. It also increases its tendency to bead rather than flow, and thats definitely something you don't want.
As previously suggested by hkshooter, use Tamiya thinner for best results. Alternately, IPA. I have used methylated spirits, which (in Australia) is 95-98% ethyl alcohol and add a drop or two of acrylic retarder to the mix.
I have found that Tamiya paints, particularly the flat colours, can be thinned far more than what most people suggest. It's not unusual for me to go 4:1 thinner to paint for base colours, or 1:1 when I need denser coverage.
As far as water goes, I only use it for cleaning up afterwards.
I'll go a little further to add that thinning ratios are only a guide, they are not set in stone. Viscosity can vary from one colour to another and from one production batch to another. Even if you buy two jars of the same colour, if you leave one on the shelf unopened and use the other to brush paint for an hour or so, evaporation of thinner out of the open jar will mean that the used jar is "thicker" than the new one. So thinning ratios can be a rough guide, but in the end, thin it to the consistency that works for what you are doing.