On August 10, 1994, about 1400 eastern daylight time, a Cessna 210A, N6601X, collided with the ground during a forced landing at Varnville, South Carolina. The engine lost power, while in the initial climb after a touch and go landing, at the Hampton-Varnville Airport, South Carolina. The airplane was operated under 14 CFR Part 91, and visual flight rules. A flight plan was not filed for the personal flight. There were no injuries to the private pilot, nor to the pilot rated passenger. Origination of the flight was Varnville, minutes prior to the accident. The pilot was receiving a biennial flight review and was conducting touch and go landings at the airport. After several landings, while on the initial climb after a touch and go landing, the engine quit. A forced landing was begun. Prior to colliding with towers and houses, the instructor rated pilot turned the engine boost pump to the low position. A burst of power allowed the airplane to be flown to a watermelon field for the forced landing. During the landing roll the nose gear sheared off, which resulted in the right wing colliding with the ground. When the wreckage was examined, by an FAA airworthiness inspector, about 30 gallons of fuel was drained from the airplane. About two ounces of water was drained from the fuel system gascolator. The spark plugs were clean, and the dry combustion deposits normally found on the piston crowns was cleaned away, consistent with water injection. The engine was prepared and operated about 45 seconds. During the first run, the number 5 cylinder did not fire because of water in the injection line. The engine was restarted and operated to 1200 revolutions per minute. A bent propeller precluded higher power output. Both fuel caps were examined for leakage around the seals. No leakage was found. Both fuel bladders had wrinkles; some of which were about 1/2" high. Airworthiness Directive 84-10-01-R1 is applicable to the airplane. It deals with water contamination of fuel systems. The aircraft log indicated that the AD was initially complied with by inspection, on May 31, 1985. Fuel quick drains were installed at this time. Annual inspections were recorded in the aircraft log on 10/10/85, 12/02/86, 06/22/90, 08/10/91, 03/04/93, and 03/10/94. The airplane was approved for return to service following each inspection. According to the inspector, other than the water contamination in the fuel, no evidence of engine failure or malfunction was observed.