I know that any place which serves liquor can be held liable, as well as the individual server or bartender if someone they have served alcohol to causes any kind of accident.
However, I don't think there's any legal requirement to serve water upon request. It's just a dick move. Don't go back to that bar.
Also, spread their name far and wide on the internet, write a letter to the owner/manager about the unprofessional conduct of their staff. The margin on alcohol is so enormous that any bar trying to gouge you on water is either a) breathtakingly greedy or b) right on the ragged edge of failing.
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