1976 evinrude 85 hp...what kills a power pack?

the power pack went bad i changed it...used the boat 10 times no prob...i slowed down real fast and think water splashed into the engine..can water short it out? i took the cover off and found water behind the rubber seal...i get no spark again...is there anything else that would kill the new power pack other than water? i dont want to spend $150 for a new one if i need to change the stator or the trigger or maybe the regulater