how am I supposed to get the Muddy Water if I’m not able to explore?
You go around talking to different people, and make sure you have an empty bottle when you do. The game is more about meeting and hanging out with people. If you just speed through the story you're going to be missing people showing up later on. Go to each area at different times of the day and see who you can meet. Or just use the mini guide to help find everyone.