Notes on water bath: Baking the cheesecake in a water bath helps to ensure gentle, even baking and helps to avoid cracks in the top of your cheesecake.
I place my pan into a larger roasting pan in the oven, then fill the roasting pan with hot water about halfway up the side of the cheesecake pan (be careful that you don't pour any water into the cheesecake!).
You will need to wrap the bottom of the pan in at least two layers of heavy duty foil prior to placing it in the water bath to keep the water out of the pan. If you prefer not to wrap your pan and place it directly into the water, you could try putting a pan of water on the rack below the cheesecake. It won't provide the same insurance policy as baking it in the water bath, but it will help.
Safety notes: Always fill the pan while it's in the oven (I use a large pitcher) so you don't have to cross your kitchen with a large pan of hot water. Similarly, remove only the cheesecake from the oven once it's done baking, and not the whole roaster. Leave the larger pan with the hot water in the oven to cool before attempting to remove it.