R.,
I think the only two hospitals in the metro that have a water birth are St. Joseph's in downtown St. Paul (I delivered my second there - a water birth - it was amazing) and Woodwinds in Woodbury.
Here is a good resource:
http://www.minnesotabirthnetwork.com/Waterbirth.html
I used an OB with my first and a midwife (at Generations Women's Clinic in Shoreview - I highly recommend them) with my second and am using them again for my third. I much prefer the midwife experience because I wanted to have a natural birth (no meds) and the support from my midwife for that experience was far superior to that from my OB the first time around. Also, during delivery my midwife never left my side, vs. the OB that literally came in the last 10 minutes (of a 36 hour induced labor) to catch the baby.
I would call around to midwives and discuss your questions regarding your previous delivery and hear their thoughts before making a decision. My understanding is, that you would still be able to see a midwife, but you need to be low risk to have a water birth and can not have an epidural if you are in the birthing tub. I think you could be induced and still do a water birth if you were low risk.
Good luck to you!
J.
SAHM to Charlie (3) Joey (20 months) and Baby Girl due Nov. 16