In a small bowl, combine the water, vinegar, oil and seasonings. Pour 1/4 cup into a shallow dish; add lamb and turn to coat. Cover and refrigerate overnight. Cover and refrigerate remaining marinade for basting.
Drain and discard marinade. Lightly oil the grill rack. Grill chops, covered, over medium heat or broil 4 in. from the heat for 4 minutes on each side, basting occasionally with reserved marinade.
Grill 1-2 minutes longer or until meat reaches desired doneness (for medium-rare, a thermometer should read 135°; medium, 140°; medium-well, 145°).