High purity demineralized water is used and chemicals are added to control water pH, etc. Steam blowdown removes solids and deaerators are used to remove entrained oxygen.
Water chemistry is a major concern and expense for steam boiler operators. Most large boilers have continuous sampling system to automatically monitor and control water quality.
I'm not sure hydrazine is used much any more, at least in the US, due to its hazardous nature, but I could be wrong about that, like a lot of other things.
dpc