I agree that available drinking water is a prime consideration when picking an area to start looking for a good camp site.
What I look for in the site itself is:
That I be on high ground compared to any water or natural drainage in the area. That usually means that I'll be on or near the ridgeline. It's usually warmer there anyways and it makes sure that falling rocks and limbs, as well as slides won't be a concern.
No fire ant nests or bee hives nearby. I camped near a river a couple summers ago and a swarm of bees moved in and rested in a tree on the edge of my camp. It was great being able to watch them swarm in and out, but there was some concern.
I look for wind breaks too, unless it's the time of year that biting insects are out and about, then if there is a breeze blowing and it meets most of the other criteria, I want my camp there, because the breeze will help to keep the flying insects at bay.
Even though firewood is a consideration, it can be gathered from other areas and brought back to camp if needed. Same with water. Camping away from the water source helps to keep insect numbers down. Not skeeters though. Dang those Mtn. Skeeters get big and they are always thirsty. :shock:
Privacy is very important to me and I will walk a considerable distance into the hills or mtns. to find a secluded spot that isn't traveled much by the masses. When I run out of foreign footprints, I know I'm getting close. :wave: