is there a way to repair my ipod touch from water damage

First, have you tried drying the iPod like shown here:

How to fix a wet iPod or iPhone | eHow.com

That works sometimes.

Apple will exchange yours for a refurbished one for a fixed price. That price is:

Apple - Support - iPod - Repair pricing

A third-party place may be less expensive. Here is one. Google for more:

DigiExpress.us - The iPad Repair Professionals

There's really no way to phyiscally repair it once it gets wet without replacing it, the iPod touch's electronics are too complex. Once the water sensor has been tripped, Apple won't replace it, for a fee or under warranty.

palfano93, did you notice that the post is about two years old? It dow not good to reply to such an old post.

Your iPod has a Liquid Contact Indicator, so when you take it back to the Apple store and they examine it they will find out that it has been in contact with water, so taking it back might not work.