Alcohol in Fuel

I'm starting to notice a lot more pumps around these days with a
notice that they may contain up to 10% ethanol in the fuel mixture...
Of course, they kind of puts a crimp in my autogas STC for my plane,
but it got me to thinking if there might be a way to separate out the
alcohol from the fuel mixture... The bio-diesel folks mix alcohol and
lye with their veggie oil while they are making their fuel and then
'wash' the fuel later by adding water to it and either draining the
water and glycerin from the bottom or pump the bio-diesel off the
top... Could we do something like that with autogas? We wouldn't need
the lye part of it, but wouldn't the water mix with the alcohol and
settle to the bottom?