Morning John
I have never came accross an installation, as you described. It reads like you are running a #4 from the panel to the water pipe, and then a #6 to the ground rods????
I have never seen that, now I'll have to go get the bible!! WHAT DO YOU GUYS THINK??
I think it is fine.
I have gone from a large service to building steel then 200' - 250' across the building I jumped from building steel to water service saving the long run of 3/0 between the water line and the service.
Here is a Handbook image that shows some possibilities.
Bob