IPhone – Turn off iPhone lock on home wifi

Apple works very hard to conserve battery life, and determining location, no matter if it is through GPS, cellular, or wifi connections takes extra battery. The arrow displays any time a 3rd party app requests your location. For instance, when you open Maps, the arrow will likely turn on because Maps needs to pinpoint where you are. The arrow may also turn on for system level locations services (settings can be adjusted in Settings > Location Services > System Services), and depending on your settings, the arrow may or may not appear for that.

As for Location Services being on or off, you can set that in the settings (Settings > Location Services), but if you see the arrow, it is likely on already.

The arrow only appears when location services are active, and may or may not show when it is just on.

So if I understand it correctly, it's not available in your LAN, cannot directly connect to a computer using USB, is unable to make a bluetooth connection and cannot connect via the cellular network either? Is there any interface that is working, other than the touchscreen?

Do you have any experience with opening up iPhones? It is not particularly difficult if you're careful and precise, and excellent guides can be found on ifixit.com. If you have another iPhone available (that is no longer under waranty, as opening it up voids that), you could consider 'borrowing' one of the interfaces from the other phone. If you have the parts available, I recommend attempting to replace the WiFi antenna.

Alternatively, you could attempt to insert another battery and hope it lives off the donor long enough to connect via usb without needing the wall charge.

Either way, as you say it's water damage, it could do wonders to open it up and let it dry or acitvely dry it yourself - bowls of rice have done miracles. This strongly depends on how long it's been since bathing time.