water? do you mean coolant? If so then your block could be cracked or warped. What motor is this happening on? Waterpump could be leaking inwards.

 

have you done a compression test and leakdown test on all the cylinders?

 

Rings could be shot or not lined up properly. That wouldn't explain the coolant in the oil tho. I would send the heads out to be checked. if you are pulling the block out as well, or already have it out, I'd send that out too.

 

your black could be cracked
it could just be another bad head gasket