The term 'GOES BY WATER' can be solved by the word 'SAILS'. This is a verb that means to travel on a boat or ship, usually propelled by wind or some other form of propulsion. It is often used in reference to sailing vessels, such as yachts, sailboats, and other vessels that are powered by sails. The term can also refer to the act of navigating a vessel through water, using the wind and other forces to propel it forward.