It was translated!
In much of the Spanish-speaking world, "Water Closet" (often abbreviated as 'W.C') is borrowed from English, and can mean the same as the American terms toilet (the actual porcelain fixture) or bathroom (the room which contains the porcelain fixture).
In Mexico I recently sawtook this photo in a sign advising patrons not to throw trashpublic restroom in the W.C.Madrid, for instance.:
So what you saw was a translation from "toilet" to the short version of the Anglicanism "water closet".