I use bottled water for 2 reasons, first there is a lot of chlorine in the water here and second, I don't like the taste of the tap water here. Hmm, I guess there is a third: bottled water costs about nothing, I think I paid 60 cents for a 5L (~1.5 gallon) bottle.Well, unless you've got any problems with your water (i.e. either too hard or too soft), I'd say neither... I've done mine with good old tap water -- I think (but I could be wrong) that a lot of people here do the same.
As for honey, Spain seems to be a good place too. I've been to a couple of artisinal shops and good honey seems to go for about €6 per kilo (a lil under 3 per pound). I just bought some small jars to try out some flavors. Lavender, Orange blossom, Rosemary, Thyme and "forest" honeys seem quite popular and affordable here.