What it is
Bacteriostatic water is sterile water containing benzyl alcohol, conventionally at 0.9%, as a bacteriostatic preservative. Bacteriostatic means what it says: the preservative suppresses bacterial growth rather than killing an established population. That is the entire chemical difference from plain sterile water, and it is a decisive one.
The reason it is decisive is the multi-entry problem. A sealed vial of sterile solution is sterile. A vial that has been entered several times over several weeks has had several opportunities for introduction, and an aqueous solution at room or refrigerator temperature is a perfectly adequate growth medium. The preservative is what stops a small introduction from becoming a colonised vial between one use and the next.
