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No, WD-40 is NOT water based - it is oil and solvent based.
The WD in WD 40 stands for Water Displacement.
Whilst WD40's formulation is still relatively unknown, it most assuredly does NOT contain water. It's use as a light lubricant and water dispersant would be ineffectual if it did!
EDIT: direct from WD40.com (official website):
What does WD-40 Multi-Use Product contain?
While the ingredients in WD-40 Multi-Use Product are secret, we can tell you what it does NOT contain.
WD-40 Multi-Use Product does not contain silicone, kerosene, water, graphite, or chlorofluorocarbons (CFCs).
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