Water is an object that is self-spawning and cannot be placed, except on console. Water appears when a toilet is broken or a shower is active. If water comes into contact with a Power Station then the prison will catch fire. There are two types of water, static water, which spawns naturally in the form of lakes, and non-static water, which appears when a shower is active or a toilet breaks. Static water is impassible and prisoners cannot swim on it or dig under it. Water can be found in lakes, however, you cannot use them as a water source. It is believed by many people that at some point in the future this will be a possibility. However, it has not been confirmed by the developers. It is useful to note that, at least as of Alpha 33, Prisoners cannot swim on lakes to escape, so they can be used safely as a wall to your prison.
Doctor Strange in The Multiverse o Madness - The Loop
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