This work investigates micro-electro discharge machining (EDM) performance involving deionized and tap water. The chosen machining regime was semi-finishing, where open voltage (from 100 to 130 V) and current values (5–10 A) were applied using a 0.5 µs pulse-on time and a frequency of 150 kHz, i.e., a duty cycle of 25%. First, numerical analyses were performed via COMSOL Multiphysics was used to estimate the plasma channel distribution and melted material, varying the current, sparking gap, electrical conductivity, and permittivity of the two fluids. Then, experimentally, the micro-EDM of holes and channels in hardened thin steel plates were replicated three times for each considered fluid. The material removal rate (MRR), tool wear ratio (TWR), radius overcut, and surface roughness were plotted as a function of open voltage and electrical conductivity. The study proves that as voltage and current increase, the MRR and TWR decrease with electrical conductivity. Nonetheless, for higher electrical conductivity (tap water), the process did not proceed for lower open voltages and currents, and the radius overcut was reduced, contrary to what is commonly acknowledged. Finally, the crater morphology and size were evaluated using a confocal microscope and compared to simulated outcomes.