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I've restumped houses with a dumpy and worked a treat. :)
Water is fine but hiring a laser or a quality dumpy if you do it right will get you within a mm where the water meniscus is that at each end.
Do the floor first - an absolute must. Think about drainage - it's nice to know that apart from a level work area the drainage will move out the door.
I did the levels one weekend using one point as my reference and noting all the other points as + or - the reference. then just worked to those dimensions.
Water will help you after that but I bet if you go around the area with water you will manage to find a cumulative error.
FWIW
Jamie
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If you can't afford the slab before the shed you put down decomposed granite, this will give you a reasonably firm floor and will be a bit better to walk on than roadbase. Run a wacker packer over the ground first if it needs it.
