Cutting wood with water? Hmmmm forgive me, but I can see a possible flaw in that one. There were actually a couple of firms who've cut veneers and marquetry pieces for me in the past using laser and who laser engraved as well, but at least one firm I had some dealings with (in Norwich) packed in a couple of years back due to lack of demand whilst the other one was in mid Wales and I can't finf d their details at the moment. The only other place I know about is:
Laser Logistics,
Unit 2, Gainsborough Trading Estate,
Rufford Road,
Stourbridge,
West Midlands,
WS10 0NN
Tel. 01384 443409
who offer a "laser cutting service for mild steel, stainless steel and wood up to 10mm", although I've never used them so I can't recommend their service from prrsonal experience. Sorry, don't have a web address, only that reference.
The other people using laser cutting may be found in companies producing wooden clock parts and dolls houses - if you can winkle them out
Hope this is a starter!
Scrit