depends on the water you want. if you want platformer water - add blue sprite with sine behaviour and randomness.
if you want top down look water... i recommend you my water which i will upload when i get home. or you can do it yourself by following these few steps:
1. download this gif - http://4.bp.blogspot.com/-9F5e4P9JxwE/U ... ssTest.gif
this gif is seamless but you will have "bombs" of areas.. best is to find quadratic seamless flow.
2. find online gif extractor and extract images (if they're not png convert them).
3. reduce their size to like 256x256
4. find a program online pngoo and optimize them
5. find a program online named SS bump generator and generate normal maps for each of the images
6. open C2. import object sprite
7. load normal images (colored ones) as animation, set looping to yes, and 24 frames per sec (or more if huge animation)
8. import another object sprite and load normal maps inside as animation, set everything the same
9. position normalmap pixel perfectly over color map
10. add effect - bump mapping
11. fix values (intensity and Z value) so you get a nice waves effect of reflection.
i'll upload capx with my example in like.. few hours after work.