Looking at it closely , I am pretty certain that for the water object
he has used animations
here Ive made a quick demo cap x for you using particles instead
just play around with it to get it looking more realistic
a slightly updated simple water demo like the one you posted newer version looks a little better
https://www.dropbox.com/s/pm26qorl02kj5ii/A%20Water%20Demo.capx?dl=0
anyone is welcome to edit this capX and repost it if you have made improvements
I was just mucking around,....its not perfect by any means
have fun!!