My dog has a pink patch on his lips. Is it from dirty water or worms?

That rash may or may not be related to the dirty water and the bugs. I recommend to discuss appropriate deworming protocols for Scooby to avoid parasite infections.
Different medications can kill different worms and your local veterinarian will be able to give you the best guidance. Common deworming medicatuons include pyrantel and fenbendazole. Other types of skin parasites heartworms need ivermectin.

Regarding his lips, those spots on Scooby could be several things including allergies, skin mites, autoimmune conditions, ringworm (which humans can get) or a bacterial infection. You can try adding in an omega 3 fatty acid supplement for pets, this can help improve the skin health. You may also try changing his diet to something like Royal Canin or Nutro as they are aimed at skin health. You can use a pet wipe and gently cleanse the area once a day. Protect the areas from licking or scratching and he may need to wear an Elizabethan collar at all times. If the lesions don't start looking better within about a week or if they get worse, have him examined by the veterinarian who may prescribe medications. Best of luck and please feel free to post any additional questions.