I feel it is best to enjoy the process and not try to get into details, that probably Science will have difficult time to measure.
Fat decomposition generates also water by that process - so the two are connected. Concerning water retaining/diluting toxins - it is lost most in the first few days. Everything depends on the level of toxicity.
Also important to note is that equally important to the fat as fuel are the other nutrients that the body was supposed to store through good diet. You may run out of the latter faster than the former.