Los Angeles, Feb 22 (IANS) Canada-based Indian filmmaker Deepa Mehta's visually stunning "Water" is in fierce Oscar competition for the best foreign film against Mexican director Guillermo del Toro's fantasy flight "Pan's Labyrinth".

"There is fierce competition between 'Water' and 'Pan's Labyrinth'. The Canadian and Mexican films are battling it out for the Oscar Academy award," an Academy member told www.hollywood.tv.

The question is not if but how "Water" will win.

"Water" ranked sixth of the overall top-grossing 15 foreign language films in 2006, making $3.3 million.

When "Water" first opened in April 2006, it played in only five US theatres. By October, it was in 91 theatres. "Pan's Labyrinth" ("El Laberinto del Fauno") by contrast, opened in 17 theatres just before new year and, according to Reuter's, has already raked in $40 million.

But when it comes to winning an Oscar, these statistics are of little consequence. In the end, deciding which film wins comes down to the voting members.

But just to get a nomination, the distributors wage an aggressive ad campaign months in advance. Picturehouse, which was formed two years ago by New Line Cinema and HBO Films, upped the ante this year, giving "Pan's Labyrinth" a better chance of winning an Oscar by having it nominated for screenplay, art direction, cinematography, original score and makeup.

On the other hand, other than campaigning for best foreign film, Fox Searchlight has done little to promote "Water" in any other category, let alone for an Oscar in cinematography, given the exceptional camera work by Giles Nuttgens, who also shot Mehta's other two films - "Earth" and Fire".