Incondite on 21 February 2012
So apparently you need to set all three noise levels in order for the water to be animated in game. I'll do a quick breakdown of how to create your own water in the creation kit.
1. duplicate the water object you want (i.e. water512)
2. duplicate or right click new a water type
3. place the object where you want. then right click and edit base object. select your water type
4. edit water type to change color and animation
