Can spironolactone help with water retention caused due to high estrogen levels?

Yes: B"sd spironolactone was actually developed as a diuretic - it has a hormonal mechanism of action blocking the adrenal salt retaining hormone aldosterone. It is in fact a very mild diuretic and anti-hypertensive - except when aldosterone is abnormaly high. In endocrinology we exploit a side property which is blockade of testosterone action on the skin - used for hirsuitism, acne.