We didn't realize we could mix it with more water and be effective.
Granted, many product labels (especially the "user-directions") are rarely crystal clear concerning application details. However (and IMO), suppliers/sellers of any pesticide should provide buyers with supplimental guidance (within the boundary of the label) and fill in any infomation-gaps or omissions.
I'm curious. Was your source a web-site supplier? (no names please)
EDIT - BTW, distilled water isn't necessary. If your pond or tap water pH is above 8, it might be best to use a surfactant with buffering capabilities (some surfactants are formulated to lower the pH of mix-water) - or otherwise add a small amount of vinegar to the mix-tank. This step will help prevent the degradation (breakdown) of THIS particular herbicide before it is applied - although this concern is unlikely a factor with the small amount of product that you're applying per treatment - as opposed to the more extensive time-frame required to conduct a multi-acre treatment.