Many penguins like to swim in the water, especially during the summer. Many penguins hit the Beach or Cove to swim, usually in Swimsuits, Shorts and Bikinis. At the Summer Parties and Water Parties, many penguins played in the water, and had tons of fun doing it. Many penguins die for these parties to come back.
H2O is Club Penguin's brand of water, dispensed by a vending machine. The bottle has a white cap and a blue label with text that reads "H2O". H2O is a chemical formula meaning two hydrogen molecules and one oxygen molecule, which results in water. However, it cannot be drunk and it is only used for decoration.
During the Festival of Flight, Club Penguin was lifted out of the water, so the Beach, the Dock and the Cove were secured with fences and brick walls, to prevent penguins to fall from the sky, since Club Penguin Island was in the air during the party. However, the Iceberg was not lifted out of the water.
Water does not get deeper the farther you go in with the exception of the Hidden Lake.