For the water do you buy it from the shop or as i seen some people do it on a RO unit.
Either one works. Usually it's easier to buy from a shop for nanos because there is less lugging water around every week and less to store. If you've got a shop right down the road it would be pretty easy, otherwise and RO unit is would be more convenient. I've done it both ways for a tank just a tad bigger and I did eventually go for an RO unit of my own for the convenience factor.