I've been chased by several (sets of) dogs on one route but I don't get upset about it. I usually whistle at them and keep on pedaling. After a short distance they give up and go home.
I also don't stop, why would I? I don't squirt water at them, I need it more than the dog but the pepper spray sounds like a good idea.
I never have been bitten but that doesn't mean I won't be in the the future but I usually don't worry about it.