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Let's figure out how to distribute the remaining beverages — beer and water.  Direct attempt to use related hints:
12. The owner who smokes  Blue Master  drinks  beer.
15. The man who smokes  blend  has a  neighbor  who drinks  water.
doesn't look promising so far.  However, it is possible to notice that Hint 15 can be legitimately reversed to a more useful statement:
15' The man who drinks  water  has a  neighbor  who smokes  blend.

This makes it impossible for the owner of the fifth house to drink water (his only neighbor smokes Prince), leaving him with the only choice — to drink beer.

The owner of the first house is left with the only remaining possibility — to drink water.

The cigar preference of the owner of the fifth house becomes now obvious, since:
12. The owner who smokes  Blue Master  drinks  beer.