diff --git a/GeneralsMD/Code/GameEngine/Include/GameLogic/CrateSystem.h b/GeneralsMD/Code/GameEngine/Include/GameLogic/CrateSystem.h
index 01c694803a5..f7e2a02bbd5 100644
--- a/GeneralsMD/Code/GameEngine/Include/GameLogic/CrateSystem.h
+++ b/GeneralsMD/Code/GameEngine/Include/GameLogic/CrateSystem.h
@@ -73,6 +73,7 @@ class CrateTemplate : public Overridable
 	ScienceType m_killerScience;								///< Must be killed by something posessing this science
 	crateCreationEntryList m_possibleCrates;		///< CreationChance is for this CrateData to succeed, this list controls one-of-n crates created on success
 	Bool m_isOwnedByMaker;											///< Design needs crates to be owned sometimes.
+	Bool m_allowWater;													///< Crate can spawn on water
 
 private:
 
diff --git a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Die/CreateCrateDie.cpp b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Die/CreateCrateDie.cpp
index de3a54c8c2d..941e673a6ac 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Die/CreateCrateDie.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameLogic/Object/Die/CreateCrateDie.cpp
@@ -208,7 +208,14 @@ Object *CreateCrateDie::createCrate( CrateTemplate const *currentCrateData )
 	fpOptions.minRadius = 0.0f;
 	fpOptions.maxRadius = 5.0f;
 	fpOptions.relationshipObject = getObject();
-	fpOptions.flags = FPF_IGNORE_ALLY_OR_NEUTRAL_UNITS; // So the dead guy won't block, nor will his dead hulk.
+	
+	if (currentCrateData->m_allowWater) {
+		fpOptions.flags = static_cast<FindPositionFlags>(FPF_IGNORE_ALLY_OR_NEUTRAL_UNITS | FPF_IGNORE_WATER);
+	}
+	else {
+		fpOptions.flags = FPF_IGNORE_ALLY_OR_NEUTRAL_UNITS; // So the dead guy won't block, nor will his dead hulk.
+	}
+
 	if (layer != LAYER_GROUND) {
 		creationPoint = centerPoint;
 		spotFound = true;
@@ -223,7 +230,13 @@ Object *CreateCrateDie::createCrate( CrateTemplate const *currentCrateData )
 		fpOptions.minRadius = 0.0f;
 		fpOptions.maxRadius = 125.0f;
 		fpOptions.relationshipObject = NULL;
-		fpOptions.flags = FPF_NONE;
+
+		if (currentCrateData->m_allowWater) {
+			fpOptions.flags = FPF_IGNORE_WATER;
+		}
+		else {
+			fpOptions.flags = FPF_NONE;
+		}
 		if( ThePartitionManager->findPositionAround( &centerPoint, &fpOptions, &creationPoint ) )
 		{
 			spotFound = TRUE;
@@ -232,6 +245,14 @@ Object *CreateCrateDie::createCrate( CrateTemplate const *currentCrateData )
 
 	if( spotFound )
 	{
+		//Move up to water surface if unterwater
+		if (currentCrateData->m_allowWater && getObject()->isOverWater()) {
+			Real waterZ{ 0 };
+			if (TheTerrainLogic->isUnderwater(creationPoint.x, creationPoint.y, &waterZ)) {
+				creationPoint.z = std::max(creationPoint.z, waterZ);
+			}
+		}
+
 		Object *newCrate = TheThingFactory->newObject( crateType, NULL );
 		newCrate->setPosition( &creationPoint );
 		newCrate->setOrientation( GameLogicRandomValueReal( 0, 2*PI ) );
diff --git a/GeneralsMD/Code/GameEngine/Source/GameLogic/System/CrateSystem.cpp b/GeneralsMD/Code/GameEngine/Source/GameLogic/System/CrateSystem.cpp
index 33eb9cef8e6..91a933fa4cc 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameLogic/System/CrateSystem.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameLogic/System/CrateSystem.cpp
@@ -185,6 +185,7 @@ const FieldParse CrateTemplate::TheCrateTemplateFieldParseTable[] =
 	{ "CrateObject",			CrateTemplate::parseCrateCreationEntry,	NULL,									NULL },
 	{ "KillerScience",		INI::parseScience,											NULL,									offsetof( CrateTemplate, m_killerScience) },
 	{ "OwnedByMaker",			INI::parseBool,													NULL,									offsetof( CrateTemplate, m_isOwnedByMaker) },
+	{ "AllowWater",		  	INI::parseBool,													NULL,									offsetof( CrateTemplate, m_allowWater) },
 	{ NULL,								NULL,																		NULL,									NULL },
 };
 
@@ -196,6 +197,7 @@ CrateTemplate::CrateTemplate()
 	m_killerScience = SCIENCE_INVALID;
 	m_possibleCrates.clear();
 	m_isOwnedByMaker = FALSE;
+	m_allowWater = false;
 }
 
 CrateTemplate::~CrateTemplate()