Water is a natural by-product of combustion, if there was a water leak into one of the bores I would expect the coolant system to be over-pressurised and very dirty. After all engine compression is higher than coolant pressure

Another thing you could try, get an uber bright torch and shine it down all 4 sparky holes, if one piston looks cleaner than the rest its a good sign that you have a hg failure.
The fact you say its worse when town driving rather than motorway driving does suggest to me you just have a coolant leak somewhere, and havent found it yet! One of my heater matrix hoses wasn't tight enough, this caused my coolant to drop but it took me ages to track it down.
Having said all that it could still be hg failure

edit: head gasket swap isnt all that difficult tbh, canb be done in a day. trouble is you want to get your head skimmed really, they don't tend to just blow for no reason!