It does not say the water is injection grade. There may be impurities in it. Distilled just means there are no solids in it. There may be impurities which evaporated and condensed together with water.
I would stick to something designed for injections.
As for preservatives, if you are using powder vials containing a single dose, and you use a filter (since there are no guarantees the powder is sterile), I don't see an issue. Preservatives are needed only for storage.
