The image shows it all. There’s a nasty raised line around the edge of the water, spoiling the whole effect. I know it is actually possible to get the edges perfectly flat, however I’ve found this depends on the level of the surrounding terrain. Currently if you want to take the time to flatten it out, it has to be done with a combination of the Grow, Erode and Smooth tools, which is both painstaking and annoying (and quite often impractical or impossible to achieve).
Please can we have an update that fixes this (bug? Idiosyncrasy? Not sure), or a tool to flatten just water - possibly another tick-box in the Smooth tool, i.e. “Only water”.