Preheat oven to 425°.
Toast 1/2 cup of coconut, set aside.
Bake pastry shell 8 minutes; cool slightly.
In medium bowl, beat eggs. Add sweetened condensed milk, water and vanilla, mix well.
Stir in remaining coconut.
Pour into prepared pie shell and sprinkle with toasted coconut.
Bake 10 minutes. Reduce oven temp to 350°, bake 25 to 30 minutes longer until knife inserted in center comes out clean.
Cool. Refrigerate leftovers.