The main reason of the use of distilled water is not to introduce additional contaminants to the pharmaceuticals by the use of tap water. Distilled water can not be evaluated as an inhibitor for the microbiological contaminants there, since water is a part of its metabolism and the main medium.
Here are some links, dedicated to the use of preservatives in pharmaceuticals:
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Sir, I think you should clarify the subject of preservation (what you want t preserve). Actually, Water could act as a preservative for living organisms or microorganisms. Microbial life can be preserved in pure water, freshwater systems, seawater, brines, ice/permafrost, sugar-rich aqueous milieux and vapour-phase water according to laboratory-based studies carried out over periods of years to decades and some natural environments that have yielded cells that are apparently thousands, or even (for hypersaline fluid inclusions of mineralized NaCl) hundreds of millions, of years old.
Think the question was in regard to a preservative vs. spoilage. in that context - it is clearly not useful. Microorganisms esp. Pseudomonads can grow readily in distilled water.
Article Pseudomonas aeruginosa: Growth in Distilled Water from Hospitals
No, Distilled water dose not act as preservative in a pharmaceutical dosage form.
Water is considered a growth factor for microorganisms. So, water can conserve/ protect/ preserve microorganisms. In that sense, water is a preservative for microorganisms not for a pharmaceutical dosage form.
In pharmaceuticals or food industries, generally, antioxidants or antimicrobial preservatives or both as well as sometimes chelating agents are used to preserving/ protect/extend the shelf-life of a drug product (Medicine). Distilled water cannot preserve/ protect/extend the shelf-life of a drug product or food product. In that sense, Distilled Water does not act as a preservative of drug products or foods.