Water is more acidic than alkoxides - if you have water present, you will not be forming alkoxides, you will form hydroxide and alcohol.
This is an equilibrium, though, so if you start with very dry alcohol and solid hydroxide, you can form some alkoxide. You can form more alkoxide is you also have a way to remove water as it is formed. I have seen some reports of this being done on an industrial scale, but on a lab scale it is much easier to form the alkoxide using either sodium metal or sodium hydride in alcohol. You do have to be very careful to keep the evolved hydrogen from igniting and lighting off the whole pot, however. The metal or hydride should be added in very small portions under an inert gas.
As a solvent for "strong bases", however, this is limited to bases no stronger than the alkoxide itself, and many things that laboratory organic chemists consider useful bases are considerably stronger than alkoxides. A base stronger than alkoxide (for example sodium amide, methyllithium, grignard reagents, lithium hexamethyldisilazide, all very useful synthetic bases) will simply deprotonate the alcohol and neutralize the base.
Industrially, alkoxides are about the strongest bases you can work with on large scale without some fairly elaborate precautions; in a lab setting, alkoxides are only medium strong and are usually prepared by reacting the alcohol with an even stronger base rather than by trying to react it with the weaker base (hydroxide) and removing water to force the reaction.