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If you have full authority over the air/fuel mixture, you can use water instead of extra fuel to reduce combustion temps at high load. Normally your engine will enrich the mixture from 14.7 afr (stoich) to something like 12.5-13 afr at full load (no manifold vacuum) in order to protect the engine. Under high load you could replace that extra fuel with water. You don't want water injection running all the time in the same way that you wouldn't want to run 12.5 afr at all times.
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