It'd slow Knights longer than Stun, but slow them less. Shock spasm damage could be heavily increased with this new status (It shouldn't cancel Shock; water conducts electricity! Painful!), and Freeze duration increased when afflicted with it while waterlogged, removing the latter. As a tradeoff, enemies hit with melee weapons while waterlogged would lose their Fire status if they were on fire, and the Knight in question catching fire cancels both statuses.

There were fish-like equips during the Beta, so I've heard, and those could be the Water-resisting/dealing items. I think a water Bomb would work pretty well; functioning as a blast bomb, dealing somewhat weak Elemental damage, removing Fire from any players or knights, and inflicting Water on both enemies and allies.

@Draycos

http://media.spiralknights.com/wiki-images/e/e8/Classyduds.png
I think that blue armor in this picture may be that Fish armor you're talking about.

Yeah, that blue armor.

@Duke Sounds way better than waterlogged. =/ I'm preeeetty silly sometimes.

"no, it cancels shock on other stuff" Elaborate, that made no more sense than it did before. Confused, I am.

I brainstormed a water status before; what about preventing attacking?
Additionally the sprite waterglobs could be the visual, on the head or something.

If it had some sort of mild benefit that isn't necessarily worth the trade-off of being hit with the status for it. How about a drenched player who touches a stunned player could unstun them, as if they were shaking off cold water to wake them up; if sleep ever comes back it could work the same for it. Water would increase damage from freeze and shock and reduce resist to them, but null fire with 3 seconds or so of the counter being taken off with it (depends on the strength of the fire and or water). Perhaps it could generate a bit of steam as well, proving hazardous? I'm not talking haze bombesque in size, but a little puff or too would be humorous and potentially challenging. Maybe being in water could decrease your movement speed but you wouldn't have to shield through it as you would a spike trap or anything of the sort. Water resist could decrease this slowdown, and some enemies could gain a damage/defense boost or decrease from being in the water, depending on the type.

I get this image in my head of players walking on a stone bridge over a lake with water-themed gun puppies sprouting up on lilypads. :P

Ten thousand times no to water levels; I think it's fair to say that they're the most reviled stage theme in gaming history. Slowing Knights down over large portions of a dungeon is not fun.

I'm intrigued by the idea of a status effect with the primary action of altering other status effects - the current ailments don't really interact at all. Making a player temporarily more resistant to Fire at the cost of greatly increased Shock vulnerability is an interesting idea but I doubt we'll see its implementation - status ailments are, across the board, just that - ailments. There is no tactical advantage to any other status effect.

The water globes from FSC appearing elsewhere would be interesting and useful, but it's not necessary for consistency for them to appear outside of the Citadel - after all, Beast Bells don't occur natively anywhere other than the Wildwoods, and those colour-coded gates only appear in the Factory.

You do realize that if you add another element or enemy type it would mess up the gate construction table. Every crystal has 4 things it helps make and 2 it discourage adding anything would destroy that. Water does not work as an element. It works as a catalyzer for some and a dampener for others. You say it will slow down people but stun already does that. It is useless and should not be implemented.

I noted my suggestion of it inhibiting the ability to attack because of it being a "weaker but longer stun" right now.

To evaluate, we can first just review on the sort of action-limiting status effects we already have.
Freeze - Disables movement and turning
Shock - Impedes movement and breaks charging
Stun - Impedes movement and attack speed
Fire - Breaks charging
Sleep - Disables all actions
Curse - Narrows forms of offense
Poison - Disables healing

We already have 4 statuses that have to do with 'slowing' or limiting the player's movement. Even if one isn't mentionably evident, that's still half of the current statuses.
Two notable mechanics missing in the current array is simply disabling attacking entirely, and disabling of the shield. The latter, were it implemented, may not make as much of a difference to some, but the former could be an interesting fit.

It could have the same durations as Stun or so, and be a mix of the need to cease fire/fall back that is present in Curse and Poison.

Keep in mind that this doesn't have to be a prominent status; we need more sub-statuses anyway.