Thanks for your reply....I think there is a bug in the program....I don't think that the treated waters that were rewarded during play ended up counting towards this quest...in the end, I had to process 3 separate Treated Waters through the Chemical station (giving my bag 6 in total), and it finally let me continue the scene.
i checked it, and the mission figures out the amount in your bag (among other conditions) before it's conclusion. its most likely that in the time that it took you to make the additional water, you completed missing conditions too (or maybe you had a tyr conversation already on the same day you went there the first time).