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hi there!
lavender hydrosol is the water left over when the lavender is steam distilled to render out the essential oil. they do this alot with neroli (orange flower) and rose too.
these make lovely lotions, creams and body splashes, but i would be hesitant to use in c/p soaps as they are usually expensive, would take a much larger amount for fragrance, as the lye would pretty much wipe out the scent unless perhaps you used it as all your liquids.