Bacteriostatic water is water for injection containing roughly 0.9 per cent benzyl alcohol as a preservative, and its purpose is to suppress microbial growth in a vial opened repeatedly.
Opened vials accumulate bioburden with every pierce, and benzyl alcohol suppresses the growth of the organisms that get in but does not prevent them getting in.
The osmolarity of bacteriostatic water is roughly that of normal saline, which makes it generally safe for subcutaneous or parenteral use.
Benzyl alcohol efficacy in suppressing common skin and environmental bacteria is well-established and published.
The limitation is that preservatives work when they work and fail when they are overwhelmed, and you have no way to know which case you are in without testing.
The practical summary: use bacteriostatic water for multi-withdrawal, store refrigerated, and respect the 28-day limit.