I prefer zero water.  There are various approaches to get you to zero.  I won't fuss too much if the water content is 2% or less, but it does lower your yield and make washing more problematic.

1. You can heat your oil to around 240F.  Messy, smelly and possibly dangerous.  As the water turns into steam, it can launch boiling oil right at you.  I don't know how it knows where you are, but trust me on that. Plus it sucks up wads of energy.  Cooking to this temperature would be my last choice.
2. Gravity seperator.  If you let your raw oil settle for a few months, especially if the containers can sit in the sun and bask, this will often do most of the work for you.  Just leave the grotty water and crunchy bits on the bottom.  This method is not totally reliable and should never be used without testing for water content prior to reaction.
3.  Circulation drying, my method of choice. Combines nicely with #2. This consists of pumping or recirculating the oil through a nozzle or perforated pipe (rather like a showerhead but with bigger holes) into a drum to produce lots of surface area to allow the water to evaporate.  It helps if the air is dry and the oil is warm.  I heat mine a bit to 120F to help the water evaporate. This always works, but the wetter the oil, the longer it takes.  And of course, I still test to make sure.