Lower temperatures are used for synthetic materials like polyester, silk, acrylic or nylon. For cotton clothes are often used higher temperatures. The information about recommended ironing temperature is usually included on the clothes' label.
On the label there should be an iron image with one or more dots inside. One dot means lower temperature, two dots mean medium temperature and three dots mean higher temperature. So before ironing, you should modify iron settings according to the number of displayed dots.
Using of water while ironing depends on the type of iron or on the specific settings. But many irons can work with or without water.