On September 1, 2003, about 1130 Atlantic standard time, a Cessna 172F, N8578U, owned and operated by an individual, lost engine power, and impacted with the ground during a forced landing, near Fajardo, Puerto Rico. Visual meteorological conditions prevailed at the time, and no flight plan was filed. The personal flight was conducted under 14 CFR Part 91. The airplane was substantially damaged. The airline transport-rated pilot reported no injuries. The flight was originating at the time. According to the pilot's written report, after taking off at an altitude of about 300 feet the airplane's engine lost power. He elected to performed a power off landing in a cane field, the nose wheel of the airplane got caught in a ditch which resulted in the airplane coming to a stop upside down. A witness stated he watched N8578U take off, and was climbing out when he heard the engine "sputter about two times". The airplane continued to climb before the engine "quit". He observed the airplane bank left and right several times before making a "sharp" left turn about 180 degrees. He lost site of the airplane just before it hit the ground, as he reached the accident site he observed a man getting out of the upside down airplane. In a phone conversation with the NTSB investigator-in-charge a couple of days after the accident, the pilot explained it had been close to 3 weeks since the airplane had been flown. He went on to explain, that he drained large quantities of water from both the left and right wing fuel tank sump ports. He fueled the airplane with a total of about 29 gallons of 100 LL aviation fuel and drained a total of a gallon of fuel from both wing tanks again with "no" indication of water in the fuel. He also stated, the engine run up check prior to takeoff went "uneventful". The individual who recovered the airplane from the field stated he removed the engine and wings from the fuselage to facilitate transportation of the airplane, when up righting the engine, a noticeable amount of water poured out of the carburetor. An airframe and powerplant mechanic stated to the Federal Aviation Administration inspector that when the carburetor bowl drain plug was removed, only water came out of it, no fuel at all. The Federal Aviation Administration inspector stated that the pilot said after loss of engine power, he maneuvered the airplane 180 degrees in an attempt to return to the runway. Due to the low altitude, he was forced to land in a nearby farm. At the time of the accident no water was utilized at the seen. Weather reports support that there was no rain in the area between the accident and the time the airplane was removed from the farm.