I would say the best fluid to use would be a water-antifreeze mix to the summer concentration (for California), or the winter concentration everywhere else. The antifreeze does indeed contain rust inhibitors, and I don't know if they're available OTC. Don't forget to completely change the coolant every couple of years (as the inhibitors will "wear out"), I guess with open tank you'd want to top up with pre-mixed water/antifreeze. Antifreeze alters the boiling point of water so you might find your engine runs a couple of degrees hotter.
PS - Tom, I think unless you're using the engine regularly, you'd have to buy the relatively expensive synthetic soluble cutting oil; the normal stuff becomes, essentially, a gigantic petri dish - much loved by bacteria and other heebie jeebies; "sump life" is a big thing for machinists... A friend of mine put regular soluble in his mill, and had endless trouble with it going off. I got some super-expensive stuff and - touch wood - no problems with excess wildlife 3 years later.