You need two forms of grounding according to the code. Grounding to the water main is typically the best ground in a building. If you don't have a water meter you can add an extra ground rod.
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#4 bare copper connected to two 8' copper ground rods 6" apart driven into the ground.
NEC code requires #6 bare copper.
Yes, there are ground wire gauges. The approiate size ground wire must be matched to the size service you are installing. For instance a 200 amp serivce must be grounded with a # 4 bare copper ground wire.
A 200 amp service using a uffer ground will need a #3 bare copper wire. The bare copper wire is to be not less than 20 feet in length. It also has to be within 2" of the concrete foundation footing that is in direct contact with the earth. The depth can not be less than 2 feet below finished grade.
No, you can use #4 bare copper ground wire.