Yes, exactly that. The -k or -ka suffix in Slavic languages often expresses the diminutive, similar to -ito, -ita in Spanish. Thus:
* вода - voda - water
* водка - vodka - vodka
* вода - voda - water
* водка - vodka - vodka
-ie (doggie)
-let (booklet)
-ling (duckling)
-ette (cigarette)
None of which seem to work well with "water" (waterie, watelet, waterling, waterette)