Try a small amount at a time. Easier to agitate to get the water & ethanol to come in contact.
You'll have to agitate it real well. Maybe 1 gallon of gas & a few ounces of water in a 2 gallon jug & shack the heck out of it.
Measure the water in & the water out after the mix is separated. Might be surprising how much water the ethanol fuel absorbs.
In the oil business, we'd add water to the solvent to make sure it didn't have alcohol in it before we sampled the crude oil for water.
Centrifuged the solvent/water mix, poured the water saturated solvent of the top & used it for the sampling.
Mixed solvent & crude 50/50 then centrifuged in calibrated beakers to get % of H2O in the crude & subtracted it from the total volume.
(we caught a producer adding alcohol to the solvent (he used "Heat", in the yellow bottles) It made their crude appear to have 0% water when we sampled it, which is rare.) (0.5% water in a million barrels of oil is allot of money, 5,000 barrels of water.
)
But you are on the right track, just need to find out what the water does to the other components added to gasoline.
Know anyone in the oil refinery industry, they could help you allot. Probably have done the exact thing you are thinking of doing & may have some good info for you.
Like: What chemical is created when water & ethanol combine? Will it settle to the bottom? Do I need to add an octane booster?
With some research & experimentation, I think you will be successful & learn allot.
Separation to get the left over water out of the gasoline seems to me to be a major hurdle for you. Some water will remain in suspension, we used centrifuges, but you probably don't have one in your garage. Our lab work was done with the liquid at 140°f & added a few drops of toluene as a water knock out chemical.
Freezing it & filtering out the ice crystals may work but you'd have to work in a freezer
An aircraft, "Go - No Go" water filter may be the best solution. We use small ones built into a funnel for our gas when we go out in the bush on hunting trips (we have to haul a few 5 gallon cans of extra fuel) & almost all aircraft fuel pumps have larger ones inline. Most work for 2 cycle fuel too.
A small micron filter that passes a fuel molecule but not the larger water molecules. A good filter to have anyway for any important engine, especially in the winter.
Ref:
http://www.aircraftspruce.com/catalog/eppages/mrfunnel.php
I see Bailey's is selling alcohol free fuel (40 & 50 : 1) now. That may be an easier / cheaper solution if you can't find a source for good gasoline.
Get a 55 gallon drum of "alcohol free" gas (Stabilize it) & save it for your small equipment. Not sure how well the "octane booster" work but that may help.
I'm glad it's to expensive to ship ethanol in the quantities need to mix with the gasoline here. Also when they tried it, the EPA air quality test didn't come out to have cleaner air in Anchorage, just a bad odor during temperature inversions, so the program was nixed. Knowing government regulations, at any time it could come back.
You have a "Very interesting idea"
Keep us posted.