With cutout volumes you can cut water out from custom area in water surface.
You will need to enable and configure cutting on each water surface separately.
Method #1:
Method #2:
WaterCutoutVolume
component.
You can choose between 3 possible shapes: procedural box, procedural sphere and custom mesh.
If you decide to use custom mesh, remember it should be:
Internally, they create also triggers so the physics system is aware of cutout volumes.
It means that e.g. if ship enters cutout volume, it will stop floating on this surface and fall down.
(read more: Floating Body and Water Sampler)
Although physics behaviour is constant, you can can configure how cutout volume is processed visually on each surface.
They are two different things - cutting out from physics and from rendering.
For each surface you can determine how cutout volumes will be culled from rendering.
Each mode has pros and cons.
Possibilities are:
For water surface you can enable reversed cutout.
As it says, cutout will work opposite - water will be visible and physics on this surface will be processed only inside volume.
Using this method you can create e.g. water-in-water.
Practical example is to cutout water from ship interior, create second water surface with reversed cutout and put it inside ship - now you have separate water surface inside ship that you can dynamically change height level to simulate sinking ship.