Rag water

In ye olden days, they used to recycle spilled booze by soaking it up with a rag and squeezing it out into a vat. This disgusting concoction was resold to the local drunkards who couldn't pay for anything better and didn't give a damn what they poured down their throats so long as it got them good and drunk. In our civilized age, it usually refers to any nondescript low quality alcohol that straddles the line between barely drinkable and a health hazard.

"That poor bastard Jerry blew another paycheck on the track this week. He's hitting the rag water pretty hard tonight."