The water is a piece of 6x8 paper cut into stripes a half an inch from the edge like you were going to do paper weaving but just pulling every other piece out instead.
When you watercolor a paper towel on top of a piece of paper it leaves the color and some cool little spots from the paper towel. I cut symmetrical fish out of the tie dyed paper. You have to add a little piece of paper to the back side with a couple of small slits so it will stand on it's own.
Click HERE to see this idea and get a tutorial from Toys from Trash.