You need to keep the mare in the stall with the foal but I do not agree with tying her up, I just don't!
You can make up a stall within a stall, where the baby will be able to stand and turn and be there, smell, sight etc, but Mama is not restricted either, and not just some nurse cow....sorry, but there are more humane ways of doing this, and still getting a good result, I know as I have done it.
There is a good chance, if you restrict the mare as suggested, she will resent the foal even more- I know I would.
You should not allow the foal to approach the mare without you being there and the mare being held- if you do this religiously, always being present and always holding the mare, eventually you will be able to back off and there is a good chance of a good ending. Tying the mare, I do not think I would ever trust letting her loose, whereas with the more humane route you can back off a bit at a time, keeping up on the pain meds and the sedative until you are sure. As I said at the start it took me 15 days this last time, til the mare was what I would call "normal" but that is the longest it has ever taken.
The foal, if you are hand rearing, would be better off, as some have said, on a bowl than a bottle, and I normally have my orphan foals weaned onto a mash feed by one month- obviously they still have milk pellets in there, but, again, they wean off a lot quicker than a natural raised foal as there is no emotional tie to break.
I have never had a problem with foals drinking water and all my foals, orphans and otherwise, are drinking water by 2/3 days- I would worry of they were not. Whilst I can see the dangers of an orphan drinking too much water, if the milk feeds offered are right it should not have any more need to drink water than a natural raised foal.
So- clean water at all times, maybe just not a HUGE bucket of the stuff