A very Simple, Single movieclipped Water Effect, easy to incorporate.

This effect comprise of three layers :
1.Msk - Masks the portion underlying Movie Clip.
2.MC - Movie-Clip that contains the Main Stuff.
3.IMG - Duplicate Main-Image.

Movie-Clip 'MC' Comprise of two layers:
1.Ripples - Contains ripples drawn manually, that mask the underlying Main-Image layer.
2.Img - Main-Image.
Motion is imposed on 'Ripples' to make the illusion of rippling waves.

How to incorporate it into Your content?
You just need replace the image in both the layers i.e. :

3.IMG - Duplicate Main-Image.
and
2.Img - Main-Image.(the layer within the Movie-Clip 'MC')

further you just need to maintain the Mask in :
1.Msk (Masks the portion underlying Movie Clip).

Enjoy Rippling Water.