Hi Julie
It doesn't seem to me that you were really asking for compensation as such, more a kind of re-imbursement of expenses that you didn't really expect to incurr.
It seems to me that the owner was less than honest by saying 'oh I thought I told you about this' (that implies they know full well they didnt tell you and thought they would lose the booking if they did).
If you paid a good a good amount of money for your villa, I feel that an honest approach by the owner is the least you can expect, then you can make an informed decision as to if you wish to proceed with the booking.
You could also have perhaps decided to stay with Cyprus, but go for a hotel as they seem to have more of an ability to manage this problem & you were unlikely to be without water for 5 days, even if timings of water supply were limited.
Hope you stick around, but unfortuantely the word compensation is like a red rag to bull to many on this forum, and I guess you will have been put off.
It would be better if people refered to it as a reimbursement of expenses that they were totally unaware they would have to meet when booking the villa. Sort of thing that gives villa owners a bad name really.