Ok - here goes

I believe it was Italian, had water in the title (not sure though) and featured:

a fellow who dies w hankerchief on his face, which was used to possess someone else with his soul/persona

a parasite introduced into a woman's ear

satan in the form of a crane, digging into the woman's neck to eat the parasite

the woman gives birth to the child of satan

I think the ending had the woman engulfed in flame but protected by satan...

Well, anyone recognize this...