You've all heard the stories about the various men who created a water powered car, then disappear shortly after, right? Were all these stories fake, or are there actual cars being ran off water this very instant? The answer seems to be no, cars are not ran on water. This is because in order for a liquid to be a fuel, it must be combustible. Water is a non-combustible liquid. Therefore water cannot be a fuel. Hydrogen on the other hand can be used a fuel, if it is separated from the oxygen in the water molecule. But there is a problem. In order to separate the hydrogen from oxygen, you must reverse the energy process that created the water molecule. This reversing of energy requires an input of energy greater than the amount of energy you would get out from burning the hydrogen atom, making it pointless. Basically, the act of obtaining the hydrogen for fuel, takes more energy than you would get from the hydrogen fuel. This is why a water, or hydrogen, powered car is not possible at the moment.
Water powered cars = Hoax!