Hi Rick in answer to your questions
1 Will I need to program the unit - YES
#2 do I have to hook up water? - Only if the ESC gets hot so recommended very easy
#3 If water hook-up needed how do I go about doing it. - You use a pipe pick up located behind the propeller you can buy a commercial item very cheap on ebay
#4 Will I need a pump to run water or are there water pickups. - No pump required as its pushed around by the propeller forcing it up the tube.
I suggest you look up the manual for the ESC and possibly there will be a programme card for it again not expensive if you want to see water pick ups look at
https://www.ebay.co.uk/sch/i.html?_from=R40&_trksid=p2334524.m570.l1313&_nkw=model+boat+water+scoop&_sacat=0&LH_TitleDesc=0&_odkw=water+scoop&_osacat=0