--- a/src/town_cmd.cpp	Sun Apr 29 08:43:00 2007 +0000
+++ b/src/town_cmd.cpp	Sun Apr 29 09:18:52 2007 +0000
@@ -951,7 +951,7 @@
 	for (ptr = _town_coord_mod; ptr != endof(_town_coord_mod); ++ptr) {
 		/* Only work with plain land that not already has a house */
 		if (!IsTileType(tile, MP_HOUSE) && GetTileSlope(tile, NULL) == SLOPE_FLAT) {
-			if (!CmdFailed(DoCommand(tile, 0, 0, DC_AUTO, CMD_LANDSCAPE_CLEAR))) {
+			if (!CmdFailed(DoCommand(tile, 0, 0, DC_AUTO | DC_NO_WATER, CMD_LANDSCAPE_CLEAR))) {
 				DoCommand(tile, GenRandomRoadBits(), t->index, DC_EXEC | DC_AUTO, CMD_BUILD_ROAD);
 				_current_player = old_player;
 				return true;