"It seems there is no water."
Translation:Кажется, воды нет.
I checked the conjugations for the verb кажетесь, and I guess it's very hard for me to pronounce the second person singular:
My native language is Portuguese. Is it hard for you guys too?
Expressions on non-existence that use нет always attach a noun in the Genitive. This is also how it works for quantities like много, мало, несколько. In a sense, you can think of нет as the zero amount of stuff :) (though, in reality negation and Genitive have more connection than that)
Нет is all you need to express absence or non-existence; so often нет = English "there is no," like есть often = English "there is."
У is used with genitive endings, so you'd need 'у места,' which I've occasionally heard in the sense of 'at the place of/at the place where something happened' ('у места теракта в брюссельском метро' - at the place of the act of terrorism in the Brussels metro), but you don't need that for this kind of simple statement:
Нет воды/Воды нет. There's no water. Нет денег. There's no money. Моих друзей нет. My friends aren't here.