Water is now an effects layer. You can modify this water by opening up the topology tool in Surveyor Classic - I don't remember how to do this in the new one.
You then click on the scrolling window where it says Ground and change that to Effects Layer where it'll display water.
This is where my memory fades...
There's an option somewhere to edit this and change the height to something more reasonable.
The other option is to delete the water effects layer and use the old-fashioned water if you want.