I just did another image color count.

With Faw's water: 477 colors
Without Faw's water: 226 colors

I think we can work on reducing the colors even further. It's definately possible. And sorry about what I said Faw. My suggestion is to make the water use just 6 colors like the others. I know Violet can reduce the tileset's colors using TilesetPal, but any kind of color reduction, no matter how good, will end up looking bad with too many colors. And as far as I know, TilesetPal doesn't support dithering, so it will look even worse.