Drinking distilled water is something people do when they are preparing for a contest/show as part of a water drop, as you want to avoid all minerals/salts/etc. in your intake to get rid of as much retained water as possible. You would also be eating no carbs for the duration of the water drop and then a 'carb up' on the day of the event. This is to make the skin tightest and the muscles look fullest.

If you want to cut, a ketogenic diet is probably the best bet. It'll take a bit to get used to, but it definitely works wonders, mind you diet is only half the battle - you need to be exercising as well.

If you can fit it into your schedule, a workout earlier in the day followed by some cardio later in the day (don't do them in one big session) is ideal.

I've got a pretty decent knowledge base on this stuff, especially since I've done a lot of it recently (the cutting, water drop, show, etc.), so feel free to ask.