diff --git a/bin/assets/SettingsAssetSet/SettingsAssetSet.xml b/bin/assets/SettingsAssetSet/SettingsAssetSet.xml
index e883b6a3c0..3f8ddef2ff 100644
--- a/bin/assets/SettingsAssetSet/SettingsAssetSet.xml
+++ b/bin/assets/SettingsAssetSet/SettingsAssetSet.xml
@@ -5,7 +5,6 @@
     <Key Name="assetType" Value="56" />
     <Key Name="fileName" Value="DefaultDaycycle31.dat" />
   </Section>
-  
   <Section Name="Default Daycycle">
     <Key Name="assetID" Value="5646d39e-d3d7-6aff-ed71-30fc87d64a91" />
     <Key Name="name" Value="Default Daycycle" />
@@ -19,35 +18,24 @@
     <Key Name="assetType" Value="56" />
     <Key Name="fileName" Value="DefaultSky.dat" />
   </Section>
-
-  <Section Name="Default Water">
-    <Key Name="assetID" Value="59d1a851-47e7-0e5f-1ed7-6b715154f41a" />
-    <Key Name="name" Value="Default Water" />
-    <Key Name="assetType" Value="56" />
-    <Key Name="fileName" Value="DefaultWater.dat" />
-  </Section>
-
   <Section Name="Sunrise">
     <Key Name="assetID" Value="01e41537-ff51-2f1f-8ef7-17e4df760bfb" />
     <Key Name="name" Value="Sunrise" />
     <Key Name="assetType" Value="56" />
     <Key Name="fileName" Value="Sunrise.dat" />
   </Section>
-
   <Section Name="Midday">
     <Key Name="assetID" Value="6c83e853-e7f8-cad7-8ee6-5f31c453721c" />
     <Key Name="name" Value="Midday" />
     <Key Name="assetType" Value="56" />
     <Key Name="fileName" Value="Midday.dat" />
   </Section>
-
   <Section Name="Sunset">
     <Key Name="assetID" Value="084e26cd-a900-28e8-08d0-64a9de5c15e2" />
     <Key Name="name" Value="Sunset" />
     <Key Name="assetType" Value="56" />
     <Key Name="fileName" Value="Sunset.dat" />
   </Section>
-
   <Section Name="Midnight">
     <Key Name="assetID" Value="8a01b97a-cb20-c1ea-ac63-f7ea84ad0090" />
     <Key Name="name" Value="Midnight" />
@@ -55,6 +43,13 @@
     <Key Name="fileName" Value="Midnight.dat" />
   </Section>
 
+  <Section Name="Default Water">
+    <Key Name="assetID" Value="59d1a851-47e7-0e5f-1ed7-6b715154f41a" />
+    <Key Name="name" Value="Default Water" />
+    <Key Name="assetType" Value="56" />
+    <Key Name="fileName" Value="Water/DefaultWater.dat" />
+  </Section>
+
   <Section Name="Altocumulus Clouds">
     <Key Name="assetID" Value="ffc4de4a-9845-41c1-9f9f-762a059d0bdc" />
     <Key Name="name" Value="Altocumulus Clouds" />
diff --git a/bin/assets/SettingsAssetSet/DefaultWater.dat b/bin/assets/SettingsAssetSet/Water/DefaultWater.dat
similarity index 100%
rename from bin/assets/SettingsAssetSet/DefaultWater.dat
rename to bin/assets/SettingsAssetSet/Water/DefaultWater.dat
diff --git a/bin/inventory/SettingsLibrary/Items.xml b/bin/inventory/SettingsLibrary/Items.xml
index 6492e337b3..9d263b3201 100644
--- a/bin/inventory/SettingsLibrary/Items.xml
+++ b/bin/inventory/SettingsLibrary/Items.xml
@@ -78,6 +78,17 @@
 	<Key Name="flags" Value="0" />
   </Section>
 
+  <Section Name="Default Water">
+    <Key Name="inventoryID" Value="87d94cf4-bfcd-46d5-bd50-17130a000001" />
+    <Key Name="assetID" Value="59d1a851-47e7-0e5f-1ed7-6b715154f41a" />
+    <Key Name="folderID" Value="25000112-000f-0000-0000-000100bba025"/>
+    <Key Name="description" Value="" />
+    <Key Name="name" Value="Default Water" />
+    <Key Name="assetType" Value="56" />
+    <Key Name="inventoryType" Value="25" />
+	<Key Name="flags" Value="1" />
+  </Section>
+
   <Section Name="Default Clouds">
     <Key Name="inventoryID" Value="02385379-afb8-48b3-8848-47c8333fed2d" />
     <Key Name="assetID" Value="1dc1368f-e8fe-f02d-a08d-9d9f11c1af6b" />