Off the Mazda website:
"Dream Of Young Wankel
The rotary engine began with an improbable dream one summer in 1919 by a 17-year-old German boy named Felix Wankel. In the dream, he went to a concert in his own handmade car. He even remembers boasting, in the dream, to his friends; "my car has a new type of engine: a half-turbine half-reciprocated engine. I invented it!" When he woke up in the morning, he was convinced that the dream was a premonition of the birth of a new type of gasoline engine. He had at the time no fundamental knowledge about internal combustion engines, but he intuitively believed that the engine could achieve four cycles-intake, compression, combustion, and exhaust--while rotating. This intuition actually triggered the birth of the rotary engine, which had been attempted countless times by people all over the world since the 16th century. The rotary engine has an almost perfectly smooth operation; it also meets the most stringent technical standards. His dream and intuition had steered his entire life.
In 1924, at the age of 22, Felix Wankel established a small laboratory for the development of the rotary engine, where he engaged in research and development. During World War II, he continued his work with the support of the German Aviation Ministry and large civil corporations, both of whom believed that the rotary engine would serve the national interest once it were fully developed. They held that the rotary engine, if fully exploited, could move the German nation and its industries toward greatness.
After the war, Wankel established the Technical Institute of Engineering Study (TES) and continued his work on the research and development of the rotary engine and the rotary compressor for commercial use.
One prominent motorcycle manufacturer, NSU, showed a strong interest in Wankel's research. NSU generated a great deal of enthusiasm among motor-sports fans; they were repeat winners of many World Grand Prix championships. NSU was also attracted by the ideal concept of the rotary engine. After creating partnership with Wankel, NSU promoted Wankel's research and focused on the rotary engine with trochoid housing as most feasible. "
(Doesn't sound like he intended the Wankel to be used as a water pump to me
)
First Wankel Engine
Before that, however, NSU completed development of the rotary compressor and applied it to the Wankel-type supercharger. With this
supercharger, an NSU motorcycle set a new world speed record in the 50cc class, marking a top speed of 192.5 km/h. In 1957, Wankel and NSU completed a prototype of the type DKM rotary engine, which combined a cocoon-shaped housing with a triangular rotor. The rotary engine was first invented here. . ."
http://www.mazda.com/history/rotary/e1-1.html