I'm having this same "must be placed on Rails" issue.... won't place in water, then if you hover over rails it turns green, then you click and it says must be placed in waterway with sufficient space to both sides. Any recommendations ? have a ton of mods... anyone know what to edit to allow it to place in water or ignore rail?
If it is still an issue, I found that for me, having what seems like the same problem. Is that you have to make the "Straightway Water" item. Should get unlocked at the same time as when you get the first ship, they don't cost anything to make, and if you place those down like rails, you can put it on that.