The water removes the starch, which is what the borers are after. It is a traditional method, not as effective as chemical treatment but simple, especially as you have bamboo growing close to a river.
However it doesn't mean the bamboo can be used outside, even borax treated can't be used outside because it's water soluble and will leach.
There are ways to treat bamboo for external use, and while I don't know much about them, I think they are pretty toxic and not something that could be easily applied. Best bet is to do a search for 'bamboo fencing' and see what comes up.
When exposed to the sun, bamboo will crack, allowing water to enter the inner culm, which will make it rot even quicker. There are UV resist finishes that could help prevent this, but it's all going to be a lot of work.
You could always plant some bamboo and park your car under that.
