I don't let water touch my lips either...yes I get the liquid build up underneath, but it isn't really white, it's more clear to brownish looking, like the same liquid that you get when you have a scab. But I don't recall it smelling foul, and I'm certainly not feeling ill...you're showing signs of infection because when you have an infection you feel ill. But I couldn't be certain so I'd suggest you at least let a doctor look at it and make sure it's okay, if it's been doing it this whole time then perhaps that is just how your body is healing so I'm not really sure...but yes I do get liquid buildup underneath for sure.
I only remove the crusts when it has completely separated from the skin underneath (for the most part)...and sometimes it comes off as a whole, and sometimes just part of the lip...depends on how it heals.