Here is a simple way to make a mirror or water reflected text. The pictures
on these pages are jpg compressed for quicker loading. The compression
effects the quality of the images, but, in the interest of a tutorial,
I feel speed is better than quality.
Start by making new text. Decorate the text in whatever way you like.
Go to the Edit menu and choose copy. Then go back to the Edit menu
and choose Paste as a New Layer. Then from the Image menu choose Flip.
To get the reflected effect you will need to move the bottom text up
against the top text.
Now merge your layers and with the Shapes selection tool set at Rectangle,
select the bottom part of the image.