I go to Moab once or twice a year and take the route through Flagstaff and Monument Valley most of the time. Lots of mountains but the roads are good except for I-40 between Kingman and Flagstaff. That section was dangerous this spring but they are starting to repave some of it so expect some construction there. 163 through Monument Valley is rough in the Utah half, not too bad and has a few very steep sections, but the view is fantastic. The alternate is 191 from Bluff to 160 has some really rough spots but it's an easier drive. The next time I go I will take I-70, it's about 100 miles more but the roads are much better.
I always stay at a RV park with full hookups so I haven't had to look for water, but you shouldn't have a problem finding water in the Moab area.