Volvo Troubleshooting Questions? Ask a Mechanic for Answers ASAP
Let me check a few things... Is it anti frez , coolant, or actually water? Did it over heat ?
The next thing is have a professional shop confirm this and if so sounds like the head gasket is leaking.. If so the head will need to be removed , surfaced is a must, head checked for any cracks then reinstall with new gaskets. There is one option that you might try : there are a couple up ceramic sealers that are on the market that may seal it for a time.. Not the best fix but can be tried. Napa , AutoZone, O'Rileys carry these products. Jim