Should I take carafate with water?

Yes.

Take this medication exactly as prescribed by your doctor. Do not take it in larger amounts or for longer than recommended. Follow the directions on your prescription label.

Take Carafate with a full glass of water. Take Carafate on an empty stomach, at least 1 hour before or 2 hours after a meal. Shake the oral suspension (liquid) well just before you measure a dose. To be sure you get the correct dose, measure the liquid with a marked measuring spoon or medicine cup, not with a regular table spoon. If you do not have a dose-measuring device, ask your pharmacist for one. Take this medication for the full prescribed length of time. Your symptoms may improve before the ulcer is completely cleared.

https://www.drugs.com/carafate.html