Clutch hydrolic system fluid??????

DOT4 is the only fluid you are supposed to use in the Reservoir. If it looks separated, it may be contaminated, you may need to flush the system out and refill.

 

If you needed to add some fluid, you might want to check that your Master and Slave Cylinders are not leaking. A sure sign of that is needing to top off the Reservoir constantly. It's Cheap Insurance against a breakdown, because once a Cylinder fails, you are stranded until it is replaced.

 

Could be water(ya hope it is only water)

If it is contaminated with water is not too bad and flushing the system may fix the problem.

But if it is another fluid like power stairing fluid, then flushing will not help and the hole system may have to be ripped out and replaced.
Break fluid is completely different from power steering fluid.
If it is Smiley then it maybe contaminated with power steering fluid.

Power steering fluid in a break system will ruin all the break seals including your master cylinders, everthing would have to be ripped out and replaced and is very costly.

I hope for your sake it is only water.

 

Yep, get it replaced. Slave will eventually fail and leave you stranded. Has happened to me. Also check the hydraulic line for leaks.