Yeah you guys are right, I think that it is a water cannon and not water bomb. Water balloons would obviously be a huge liability, not to mention the fact that (now that I think about it) there would be no way to reload the water balloons.
There are construction pics of this coaster at this address.
http://members.aol.com/somekick/saturator.html
Also, responding to the comment above about how they would charge for this. I sort of pictured it as a roller coaster for Soak City guests only. It would probably raise the price to get into the park, but I'm sure that Cedar Point wouldn't mind that one bit. Plus, with the low capacity that I'm sure this ride would have, Soak City would be a much more suitable home for it than Cedar Point anyway.
The builder of the Carowinds Coaster is Setpoint, Inc.