. I think you are confusing this update (static water) with another update (dynamic water)..
To my knowledge todays static water update will not auto generate in the world, you'll have to manually "paint" it in.
Anybody out here able to correct me if i'm wrong
Static water is going to naturally generate in areas of your world that have not yet been explored. This is why I was asking admins on Freaks R Us server what there plan was for upgrading the server since any unclaimed land has already been "explored" and therefore will not generate water naturally. There's so much building on your server that I don't see anyone being ok with wiping the world but I was hoping that atleast the chunks for unclaimed land would be wiped from your database to allow water to nautally generate.
So in short, in a new world, water generates naturally but is static (will not re-shape to terrain changes). In existing worlds, water will not generate in explored areas so has to be manually placed (you asked in the past about allowing players to use creative mode to place their own water). The admin I spoke to last night (Forgot his name) said admins will have to place water manually in a player's land since opening up creative mode for the players would override the protections set by area protection script (as you have stated in the past).