The phrase implies a comparison between two natural materials as different as water and fire, referring to the fact that this difference is similar to the differences between the different British colonies in America.
Thus, for example, the New England colonies were clearly influenced by Puritanism and political conservatism, while others such as Maryland had a clear Catholic influence and a more open mind regarding other religions, cultures and nationalities. Also, while in the north some manufactured goods such as ships were produced, in the south of the country the main industry was agriculture.
Answer: His teachings, preserved in the Analects, focused on creating ethical models of family and public interaction and setting educational standards. The Zhou had essentially lost its control, and China was divided up into congeries of contending feudal states warring with one another for power and control.