Yes - go for it!
Stating the obvious, the more water added, the more you will reduce your OG
If you wanted to get clever about it (a bit dangerous I know) - calculate your boil off rate - i.e. boil a pan of water for an hour (or 15 mins and times the result by 4) and see how much water is boiled off. Use that in your calculations re how much to start with at the start of your mash
Whatever - just brew some beer!
Good luck