Yes, it is normal for an 8 week old baby to pee often. They have very small bladders and very little bladder control. She will likely need to pee every hour and after eating, drinking, playing, and sleeping. Again, it is completely normal and no cause for concern. As far as licking herself, that is also normal. She's keeping herself clean.
It may not be normal, take her to a vet to rule out a urinary tract infection or parasites. Every puppy is different but some must be taken out potty every 15 minutes during the day time if they are running around and playing and some even a few times throughout the night.
How often are you talking about for peeing? They sometimes get UTIs, which cause an increase in urination and sometimes an increase in licking themselves as well. If you are truly concerned, take her to the vet. Does she seem to have any pain when she pees?
What do you mean by watching her water intake? Please do no limit how much water she drinks. That can lead to some serious problems. I know since the previous owners of my dog did that and we had to sort out the mess they created.
Some people take up water at night, but since I've had a very bad experience, I don't even recommend that. We all need water, some more than others. Rationing it is not a good idea, in my opinion.