i start my 1988 toyota corolla dx it dies out and smoke too why is it smokeing is there water in gas?

What color is the smoke? Is it white? If so, that is an indication coolant is burning in the combustion chamber. Cause of such would be either a cylinder leak, head gasket problem, or a cracked engine block.

When was the last time you saw water smoke? No one can tell you what is wrong with you car without seeing it and doing diagnostics - could be a 100 different reasons and being old and worn out is the most likely take it to a mechanic.