Outflows are an important part of the star formation process as both the result of ongoing active accretion and one of the main sources of mechanical feedback on small scales. Water is the ideal tracer of these effects because it is present in high abundance for the conditions expected in various parts of the protostar, particularly the outflow. We constrain and quantify the physical conditions probed by water in the outflow-jet system for Class 0 and I sources. Water emission at the source position traces two distinct kinematic components in the outflow; J shocks at the base of the outflow or in the jet, and C shocks in a thin layer in the cavity wall. We suggest that it is the velocity of the wind driving the outflow, rather than the decrease in envelope density or mass, that is the cause of the decrease in H2O intensity between Class 0 and I sources.