Hi, i've just dug out my 'The Coconut oil Miracle' book by 'Bruce Fife.' I vaguely remembered reading something in there about candidia.
Coconut Oil contains caprylic acid, it is a natural yeast fighter, and can be used in place of drugs. Supplement manufacturers even put it in their products to fight systemic and vaginal yeast infections.
These medium chain fatty acids in coconut oil, also have anti-fungal properties, so not only will they kill disease causing bacteria, and leave good bacteria alone but also they will kill candidia and other fungi in the intestinal tract.
Eating coconut oil on a regular basis as the polynesians do, helps to keep candidia and other harmful microorganisms at bay.
This is some extracts from the book. Apparently you can buy caprylic acid in capsule form as well.
As for if watefasting gets rid of it completely, i don't know the answer to that.
I use coconut oil instead of marg or butter, and for roasting and frying, no transfats.