Welcome stagger! When I first started with my #2, I did not use a water pan. However, over the last few months, I have used a small AL disposable loaf pan with apple juice. I put it on the floor of the unit - close, but not touching the smoke box. Truth be told, I forget why I switched to the pan...but I think it was when I went to the "no peaky" method of smoking BB ribs where I was not using the 2-2-1 method that includes foiling ribs in apple juice.
I think the small loaf pan works well, but others have commented that the units are so well sealed that they maintain moisture. Try it both ways and see which one you prefer! Cheers