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Defeat the water demon without playing the water level
To defeat the water demon without going into the water level, you must first beat the Wind elemental. In the room with the piece of the ironsword, stand directly against the door, jump and shoot the ironsword piece. You'll get it, but you'll fall into the door. Play the forest level, but save your magic. Once in the water level, go right instead of left to the water demon. There should be 3 ledges in front of him. Find a safe place to shoot from and fire away. you will defeat him. Now you can go on without playing that annoying water level.