Aloha Bluebird,
There are various ways to do the message water, and yes it's taught in the level III work..
Iam2's reference to praying over your food as explored in the Message from Water book series, is a good one to work from before doing the level III training.
The water you send your healing intention to doesn't need to be yin/yang or anything special. You can bless and send your healing intention to baby bottles (one I'd highly recomend), medicine, toothpaste, etc. I have a friend that does this regularily with her children, and one day her daughter told her she didn't want her to do it to her drink today -"it makes it taste different.", she said.
Much Love, Shawn