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Sorry to hear about your diagnosis. It is fine to continue with your water exercise while you wait for the appointment with Laser Spine Institute. They should be able to get your back fixed up so you won't have all this pain. Exercising in water takes some of the strain off knees and your back, and you do need to keep moving. No doubt you will be out of bed and walking the same day they do surgery (if surgery is what they decide is best for you).
If it is a long time before your appointment, your neurologist may want to consider an epidural injection rather than oral steroids. If the appointment is sooner than that, it's best to avoid the steroid until LSI has had time to evaluate you.
Please let me know if you need additional information.