At about 17:15 EST, a Mooney M20C lost power after takeoff and crashed to the side of the runway at Newport State Airport. The pilot and passenger received minor injuries. The airplane was departing runway 16 and had climbed to about 60 to 100 feet when the engine lost power. The pilot said his preflight inspection did not find any contaminants in the fuel, but water was found in the left fuel tank, the main fuel strainer, the carburetor and the fuel line. The concentrations of water in the fuel line and carburetor exceeded 50 percent.