The Water Planet level takes place during the daytime with a quest storyline. The player controls Squid to find 3 clues hidden in the level within 5 minutes to complete it. Enemies include crabs, octopi, and whales that act as obstacles. The player can throw rocks to defeat enemies or activate buttons. Water bursts periodically rise and fall between platforms that the player must time their jumps through. The level aims to introduce new puzzles and enemies while keeping Squid's core abilities the same without power-ups. Gold stars scattered in the level determine the player's score. Upbeat 8-bit music plays throughout to maintain a fun atmosphere.