RustyOlRanger4x4:

Yes, the idea is to carry dry food and add water obtained near your campsite. The water is the heaviest part of most food. If you can get the water at your campsite, carry it maybe 40 feet from the stream to your cooking, isn't this better than hauling it 15 miles and an aggregate climb of 7,000' (up 2000', down 1500', up 3000', down 1000', and up 2000')?

An important point made by txhunter58 is to filter or otherwise treat your water. Parasites are common in stream water, even mountain stream water. One particular parasite, giardia, is common in the Rocky Mountains and is very unpleasant. In the morning as part of breaking camp filter enough water to drink during the day. When I backpack I stash a quart of fresh filtered water in an accessible outside pocket of my pack. Hiking/backpacking authorities recommend that you drink more water in high altitude to ward off altitude sickness. When you make camp at night and cook, filter more water. Typically you chose to make your camp sites close to water.