As has been mentioned, putting the spool into a bucket of water while spooling it onto the reel works well.
As for line twist, it mostly occurs with spinning reels at least when the drag is set light and when your turning the handle nothing is happening, except twisting the line.
If you attach a small swivel on the end of the line and let it run out behind the boat while moving it will remove the coils in the line. It will then be as good as new, at least till you twist it up again.