Following tutorial is to create a water text effect.
A quick google search got me the following image of a wood surface on which we will add our water text effect.

This is what I got finally

image size: 1024x678
GIMP version - 2.6.2
Following are the steps that I followed
1] Open image in GIMP.
2] Add a new text layer and add text in white color with some hand-writing font so that it looks more realistic.
3] Take a white brush and paint some spots that we'll turn into water drops like the following image:

4] Set layer size to image size.
5] Duplicate the layer with text (Lets call them t1 and t2).
6] Right click on layer 't2' in layers dialog and select 'Alpha to Selection'. This would select the non transparent region.
7] Switch to channel window and add a new channel. Set channel opacity to 100, and tick 'Initialize from Selection' option. Now deselect all and blur the channel three times with blur raius as 7, 4, 1. Then hide the channel.

8] Now we will add some lighting effect to the layer 't2' using the channel we created as bumpmap. You can use following settings:

After applying the changes you must have something like this:

9] Select layer 't2', Lock the alpha channel (this option is towards top of the layers dialog), then blur the layer with blur radius as 4px. Unlock the alpha channel.
10] Select Colors | Color to Alpha, and choose a mid gray color. This should give you something like this

11] Now we will add some shadow to give a little more realistic look. Right Click on the 't1' layer and select 'Alpha to Selection'. Drop a shadow offset to x:-2, y:1 and alpha set to 50%.

12] There is too much *white* in the image, select the 't2' layer, Colors | Curves, select channel as Alpha and slightly move the curve downwards till you have something like this:

13] We are almost done, just need to add a slight refraction effect. Select layer 't1' and again make a selection from alpha. Now select the wooden surface layer (keeping the selection). Select Filters | Distort | Whirl and pinch, set angle to 60, radius to 2. Select Filters | Distort | Lens Distortion, Set Main:-25, Zoom:2.
14] Done!! This is what I have finally:
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