What is happening:
It`s possible to stand on water, walk and perform various animations, npcs appear to be able to walk on water too. It`s also possible to swim in the ground.
Steps to reproduce the issue:
While swimming and jumping if an attack or an action is performed the character will be able to stand onto the water.
Npcs seems to be able to walk on water (guards and a rabbit).
Go to ponydale and locate the end of the river near the mines. On the left side it`s possible to run up the cliff facing the invisible wall, this will trigger the swimming animation even in the ground.