Water maser emitting planetary nebulae (H 2 O-PNe) are believed to be among the youngest PNe. We present new optical narrow-and broad-band images, intermediate-and high-resolution long-slit spectra, and archival optical images of the H 2 O-PN IRAS 18061-2505. It appears a pinched-waist bipolar PN consisting of knotty lobes with some pointsymmetric regions, a bow-shock near the tip of each lobe, and a very compact inner nebula where five components are identified in the spectra by their kinematic and emission properties. The water masers most probably reside in an oxygen-rich ring tracing the equatorial region of the bipolar lobes. These two structures probably result from common envelope evolution plus several bipolar and non-bipolar collimated outflows that have distorted the lobes. The bowshocks could be related to a previous phase to that of common envelope. The inner nebula may be attributed to a late or very late thermal pulse that occurred before ∼1951.6 when it was not detectable in the POSS I-Blue image. Chemical abundances and other properties favour a ∼3-4 M ⊙ progenitor, although if the common envelope phase accelerated the evolution of the central star, masses < ∼ 1.5 M ⊙ cannot be discarded. The age of the bipolar lobes is incompatible with the existence of water masers in IRAS 18061-2505, which may have been lately reactivated through shocks in the oxygen-rich ring, that are generated by the thermal pulse, implying that this PN is not extremely young. We discuss H 2 O-PNe and possibly related objects in the light of our results for IRAS 18061-2505.