I use the water resistant inkjet labels from Onlinelabels. I've had no problems with water, even run them through the dishwasher. They do fade some, but no smudging, still very legible.
Now oil is different, it will sometimes smudge them. I do put an acrylic spray on them, but sometimes they still smudge . . . and sometimes not (so much for consistency).
Here's the biggest difference I've noticed - I used to do my labels on the "best" setting on my printer - and to my naked eye, they looked very nice. But in reality, not all of the ink was absorbing, so these labels were more likely to smudge.
I now do my labels on the "normal" setting, and they smudge much less because not as much ink is deposited onto the label.