Holy water is blessed and used to bless, so in a dream it is read as purification, protection and the longing for grace or a fresh spiritual start.
Has this come up in your dreams before? What was going on in your life then?
My Cosmic Code has a private dream journal. Write a dream down and the app picks out the symbols in it, shows what dream books say about them and, over time, which words recur across your entries. The journal is stored on your device only.