diff --git a/binaries/data/mods/public/simulation/templates/gaia/fauna_hawk.xml b/binaries/data/mods/public/simulation/templates/gaia/fauna_hawk.xml
index 68cf56e9a8..55489d27f1 100644
--- a/binaries/data/mods/public/simulation/templates/gaia/fauna_hawk.xml
+++ b/binaries/data/mods/public/simulation/templates/gaia/fauna_hawk.xml
@@ -4,6 +4,7 @@
     <Altitude>0</Altitude>
     <Anchor>upright</Anchor>
     <Floating>false</Floating>
+    <FloatDepth>0.0</FloatDepth>
     <TurnRate>1.0</TurnRate>
   </Position>
   <UnitAI>
diff --git a/binaries/data/mods/public/simulation/templates/gaia/fauna_shark.xml b/binaries/data/mods/public/simulation/templates/gaia/fauna_shark.xml
index ae800ef39a..e75916ee07 100644
--- a/binaries/data/mods/public/simulation/templates/gaia/fauna_shark.xml
+++ b/binaries/data/mods/public/simulation/templates/gaia/fauna_shark.xml
@@ -23,6 +23,7 @@
   <Position>
     <Altitude>-1</Altitude>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
     <TurnRate>5.0</TurnRate>
   </Position>
   <Selectable>
diff --git a/binaries/data/mods/public/simulation/templates/gaia/special_treasure_food_barrels_buried.xml b/binaries/data/mods/public/simulation/templates/gaia/special_treasure_food_barrels_buried.xml
index 1cfe7b970f..850954cf8b 100644
--- a/binaries/data/mods/public/simulation/templates/gaia/special_treasure_food_barrels_buried.xml
+++ b/binaries/data/mods/public/simulation/templates/gaia/special_treasure_food_barrels_buried.xml
@@ -15,6 +15,7 @@
   </Obstruction>
   <Position>
     <Floating>false</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <ResourceSupply>
     <Amount>200</Amount>
diff --git a/binaries/data/mods/public/simulation/templates/other/plane.xml b/binaries/data/mods/public/simulation/templates/other/plane.xml
index bbd2efd043..6f4efe8fa6 100644
--- a/binaries/data/mods/public/simulation/templates/other/plane.xml
+++ b/binaries/data/mods/public/simulation/templates/other/plane.xml
@@ -48,6 +48,7 @@
   <Position>
     <TurnRate>1.0</TurnRate>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <Repairable>
     <RepairTimeRatio>3.0</RepairTimeRatio>
diff --git a/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck.xml b/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck.xml
index 8539630e3d..b517156ece 100644
--- a/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck.xml
+++ b/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck.xml
@@ -16,6 +16,7 @@
   </Obstruction>
   <Position>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <ResourceSupply>
     <Amount>500</Amount>
diff --git a/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_debris.xml b/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_debris.xml
index b159473b2c..2645375fb4 100644
--- a/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_debris.xml
+++ b/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_debris.xml
@@ -16,6 +16,7 @@
   <Position>
     <Altitude>-0.1</Altitude>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <ResourceSupply>
     <Amount>200</Amount>
diff --git a/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_ram_bow.xml b/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_ram_bow.xml
index a6fad0e61c..226c37f144 100644
--- a/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_ram_bow.xml
+++ b/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_ram_bow.xml
@@ -16,6 +16,7 @@
   </Obstruction>
   <Position>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <ResourceSupply>
     <Amount>550</Amount>
diff --git a/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_sail_boat.xml b/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_sail_boat.xml
index 186398da75..aafaf127c9 100644
--- a/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_sail_boat.xml
+++ b/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_sail_boat.xml
@@ -16,6 +16,7 @@
   </Obstruction>
   <Position>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <ResourceSupply>
     <Amount>400</Amount>
diff --git a/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_sail_boat_cut.xml b/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_sail_boat_cut.xml
index b6fd5c211f..f29513fd13 100644
--- a/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_sail_boat_cut.xml
+++ b/binaries/data/mods/public/simulation/templates/other/special_treasure_shipwreck_sail_boat_cut.xml
@@ -16,6 +16,7 @@
   </Obstruction>
   <Position>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <ResourceSupply>
     <Amount>450</Amount>
diff --git a/binaries/data/mods/public/simulation/templates/other/territory_pull.xml b/binaries/data/mods/public/simulation/templates/other/territory_pull.xml
index 289769ce9e..ebac65f070 100644
--- a/binaries/data/mods/public/simulation/templates/other/territory_pull.xml
+++ b/binaries/data/mods/public/simulation/templates/other/territory_pull.xml
@@ -10,6 +10,7 @@
     <Altitude>0</Altitude>
     <Anchor>upright</Anchor>
     <Floating>false</Floating>
+    <FloatDepth>0.0</FloatDepth>
     <TurnRate>6.0</TurnRate>
   </Position>
   <Selectable>
diff --git a/binaries/data/mods/public/simulation/templates/special/actor.xml b/binaries/data/mods/public/simulation/templates/special/actor.xml
index 9294a74732..0ec2538e92 100644
--- a/binaries/data/mods/public/simulation/templates/special/actor.xml
+++ b/binaries/data/mods/public/simulation/templates/special/actor.xml
@@ -4,6 +4,7 @@
     <Altitude>0</Altitude>
     <Anchor>upright</Anchor>
     <Floating>false</Floating>
+    <FloatDepth>0.0</FloatDepth>
     <TurnRate>6.0</TurnRate>
   </Position>
   <Visibility>
diff --git a/binaries/data/mods/public/simulation/templates/structures/brit_crannog.xml b/binaries/data/mods/public/simulation/templates/structures/brit_crannog.xml
index 3daccc3f8b..8b10dd36bd 100644
--- a/binaries/data/mods/public/simulation/templates/structures/brit_crannog.xml
+++ b/binaries/data/mods/public/simulation/templates/structures/brit_crannog.xml
@@ -22,6 +22,7 @@
   </Obstruction>
   <Position>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <ProductionQueue>
     <Entities datatype="tokens">
diff --git a/binaries/data/mods/public/simulation/templates/structures/cart_super_dock.xml b/binaries/data/mods/public/simulation/templates/structures/cart_super_dock.xml
index 815f0db263..627638ca0b 100644
--- a/binaries/data/mods/public/simulation/templates/structures/cart_super_dock.xml
+++ b/binaries/data/mods/public/simulation/templates/structures/cart_super_dock.xml
@@ -57,6 +57,7 @@
   </Obstruction>
   <Position>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <ProductionQueue>
     <BatchTimeModifier>0.7</BatchTimeModifier>
diff --git a/binaries/data/mods/public/simulation/templates/structures/ptol_lighthouse.xml b/binaries/data/mods/public/simulation/templates/structures/ptol_lighthouse.xml
index 344febf219..52fc0a6616 100644
--- a/binaries/data/mods/public/simulation/templates/structures/ptol_lighthouse.xml
+++ b/binaries/data/mods/public/simulation/templates/structures/ptol_lighthouse.xml
@@ -32,6 +32,7 @@
   </Obstruction>
   <Position>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <ProductionQueue disable=""/>
   <Sound>
diff --git a/binaries/data/mods/public/simulation/templates/template_entity_full.xml b/binaries/data/mods/public/simulation/templates/template_entity_full.xml
index 10d6626870..4ac2091978 100644
--- a/binaries/data/mods/public/simulation/templates/template_entity_full.xml
+++ b/binaries/data/mods/public/simulation/templates/template_entity_full.xml
@@ -6,6 +6,7 @@
     <Altitude>0</Altitude>
     <Anchor>upright</Anchor>
     <Floating>false</Floating>
+    <FloatDepth>0.0</FloatDepth>
     <TurnRate>6.0</TurnRate>
   </Position>
   <Selectable/>
diff --git a/binaries/data/mods/public/simulation/templates/template_entity_quasi.xml b/binaries/data/mods/public/simulation/templates/template_entity_quasi.xml
index 5f702c5086..8c959bf29f 100644
--- a/binaries/data/mods/public/simulation/templates/template_entity_quasi.xml
+++ b/binaries/data/mods/public/simulation/templates/template_entity_quasi.xml
@@ -6,6 +6,7 @@
     <Altitude>0</Altitude>
     <Anchor>upright</Anchor>
     <Floating>false</Floating>
+    <FloatDepth>0.0</FloatDepth>
     <TurnRate>6.0</TurnRate>
   </Position>
   <Selectable>
diff --git a/binaries/data/mods/public/simulation/templates/template_formation.xml b/binaries/data/mods/public/simulation/templates/template_formation.xml
index 0d16fe0a13..9da30e0de0 100644
--- a/binaries/data/mods/public/simulation/templates/template_formation.xml
+++ b/binaries/data/mods/public/simulation/templates/template_formation.xml
@@ -26,6 +26,7 @@
     <Altitude>0</Altitude>
     <Anchor>upright</Anchor>
     <Floating>false</Floating>
+    <FloatDepth>0.0</FloatDepth>
     <TurnRate>3.0</TurnRate>
   </Position>
   <Trader>
diff --git a/binaries/data/mods/public/simulation/templates/template_rubble.xml b/binaries/data/mods/public/simulation/templates/template_rubble.xml
index d825233887..8511f8c4e8 100644
--- a/binaries/data/mods/public/simulation/templates/template_rubble.xml
+++ b/binaries/data/mods/public/simulation/templates/template_rubble.xml
@@ -12,6 +12,7 @@
     <Altitude>0</Altitude>
     <Anchor>upright</Anchor>
     <Floating>false</Floating>
+    <FloatDepth>0.0</FloatDepth>
     <TurnRate>6.0</TurnRate>
   </Position>
   <Visibility>
diff --git a/binaries/data/mods/public/simulation/templates/template_structure_military_dock.xml b/binaries/data/mods/public/simulation/templates/template_structure_military_dock.xml
index afde4b44ea..cc0ff721cf 100644
--- a/binaries/data/mods/public/simulation/templates/template_structure_military_dock.xml
+++ b/binaries/data/mods/public/simulation/templates/template_structure_military_dock.xml
@@ -40,6 +40,7 @@
   </Obstruction>
   <Position>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <ProductionQueue>
     <BatchTimeModifier>0.8</BatchTimeModifier>
diff --git a/binaries/data/mods/public/simulation/templates/template_unit_fauna_decorative.xml b/binaries/data/mods/public/simulation/templates/template_unit_fauna_decorative.xml
index 06d7086098..fb36837d00 100644
--- a/binaries/data/mods/public/simulation/templates/template_unit_fauna_decorative.xml
+++ b/binaries/data/mods/public/simulation/templates/template_unit_fauna_decorative.xml
@@ -8,6 +8,7 @@
     <Altitude>0</Altitude>
     <Anchor>upright</Anchor>
     <Floating>false</Floating>
+    <FloatDepth>0.0</FloatDepth>
     <TurnRate>6.0</TurnRate>
   </Position>
   <Selectable>
diff --git a/binaries/data/mods/public/simulation/templates/template_unit_fauna_fish.xml b/binaries/data/mods/public/simulation/templates/template_unit_fauna_fish.xml
index 865bb75b8a..41c9c42ddb 100644
--- a/binaries/data/mods/public/simulation/templates/template_unit_fauna_fish.xml
+++ b/binaries/data/mods/public/simulation/templates/template_unit_fauna_fish.xml
@@ -17,6 +17,7 @@
   <Position>
     <Altitude>-2.0</Altitude>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <ResourceSupply>
     <KillBeforeGather>false</KillBeforeGather>
diff --git a/binaries/data/mods/public/simulation/templates/template_unit_fauna_hunt_whale.xml b/binaries/data/mods/public/simulation/templates/template_unit_fauna_hunt_whale.xml
index d8ced1841c..55fad06924 100644
--- a/binaries/data/mods/public/simulation/templates/template_unit_fauna_hunt_whale.xml
+++ b/binaries/data/mods/public/simulation/templates/template_unit_fauna_hunt_whale.xml
@@ -21,6 +21,7 @@
   </Obstruction>
   <Position>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
   </Position>
   <ResourceSupply>
     <KillBeforeGather>true</KillBeforeGather>
diff --git a/binaries/data/mods/public/simulation/templates/template_unit_mechanical_ship.xml b/binaries/data/mods/public/simulation/templates/template_unit_mechanical_ship.xml
index d7af193af0..c63a36da41 100644
--- a/binaries/data/mods/public/simulation/templates/template_unit_mechanical_ship.xml
+++ b/binaries/data/mods/public/simulation/templates/template_unit_mechanical_ship.xml
@@ -34,6 +34,7 @@
   </Identity>
   <Position>
     <Floating>true</Floating>
+    <FloatDepth>0.0</FloatDepth>
     <TurnRate>3.0</TurnRate>
   </Position>
   <ResourceGatherer>
diff --git a/source/simulation2/components/CCmpPosition.cpp b/source/simulation2/components/CCmpPosition.cpp
index 6da56a2cb8..25ec626b1b 100644
--- a/source/simulation2/components/CCmpPosition.cpp
+++ b/source/simulation2/components/CCmpPosition.cpp
@@ -68,6 +68,8 @@ public:
 	} m_AnchorType;
 
 	bool m_Floating;
+	entity_pos_t m_FloatDepth;
+
 	float m_RotYSpeed; // maximum radians per second, used by InterpolatedRotY to follow RotY
 
 	// Dynamic state:
@@ -107,6 +109,7 @@ public:
 				"<Anchor>upright</Anchor>"
 				"<Altitude>0.0</Altitude>"
 				"<Floating>false</Floating>"
+				"<FloatDepth>0.0</FloatDepth>"
 				"<TurnRate>6.0</TurnRate>"
 			"</a:example>"
 			"<element name='Anchor' a:help='Automatic rotation to follow the slope of terrain'>"
@@ -123,6 +126,9 @@ public:
 			"<element name='Floating' a:help='Whether the entity floats on water'>"
 				"<data type='boolean'/>"
 			"</element>"
+			"<element name='FloatDepth' a:help='The depth at which an entity floats on water (needs Floating to be true)'>"
+				"<ref name='nonNegativeDecimal'/>"
+			"</element>"
 			"<element name='TurnRate' a:help='Maximum graphical rotation speed around Y axis, in radians per second'>"
 				"<ref name='positiveDecimal'/>"
 			"</element>";
@@ -146,6 +152,7 @@ public:
 		m_Y = paramNode.GetChild("Altitude").ToFixed();
 		m_RelativeToGround = true;
 		m_Floating = paramNode.GetChild("Floating").ToBool();
+		m_FloatDepth = paramNode.GetChild("FloatDepth").ToFixed();
 
 		m_RotYSpeed = paramNode.GetChild("TurnRate").ToFixed().ToFloat();
 
@@ -185,6 +192,7 @@ public:
 		serialize.NumberFixed_Unbounded("altitude", m_Y);
 		serialize.Bool("relative", m_RelativeToGround);
 		serialize.Bool("floating", m_Floating);
+		serialize.NumberFixed_Unbounded("float depth", m_FloatDepth);
 		serialize.NumberFixed_Unbounded("constructionprogress", m_ConstructionProgress);
 
 		if (serialize.IsDebug())
@@ -241,6 +249,7 @@ public:
 		deserialize.NumberFixed_Unbounded("altitude", m_Y);
 		deserialize.Bool("relative", m_RelativeToGround);
 		deserialize.Bool("floating", m_Floating);
+		deserialize.NumberFixed_Unbounded("float depth", m_FloatDepth);
 		deserialize.NumberFixed_Unbounded("constructionprogress", m_ConstructionProgress);
 		// TODO: should there be range checks on all these values?
 
@@ -401,6 +410,7 @@ public:
 		if (m_RelativeToGround)
 			return m_Y;
 		// not relative to the ground, so the height offset is m_Y - ground height
+		// except when floating, when the height offset is m_Y - water level + float depth
 		entity_pos_t baseY;
 		CmpPtr<ICmpTerrain> cmpTerrain(GetSystemEntity());
 		if (cmpTerrain)
@@ -410,7 +420,7 @@ public:
 		{
 			CmpPtr<ICmpWaterManager> cmpWaterManager(GetSystemEntity());
 			if (cmpWaterManager)
-				baseY = std::max(baseY, cmpWaterManager->GetWaterLevel(m_X, m_Z));
+				baseY = std::max(baseY, cmpWaterManager->GetWaterLevel(m_X, m_Z) - m_FloatDepth);
 		}
 		return m_Y - baseY;
 	}
@@ -428,6 +438,7 @@ public:
 		if (!m_RelativeToGround)
 			return m_Y;
 		// relative to the ground, so the fixed height = ground height + m_Y
+		// except when floating, when the fixed height = water level - float depth + m_Y
 		entity_pos_t baseY;
 		CmpPtr<ICmpTerrain> cmpTerrain(GetSystemEntity());
 		if (cmpTerrain)
@@ -437,7 +448,7 @@ public:
 		{
 			CmpPtr<ICmpWaterManager> cmpWaterManager(GetSystemEntity());
 			if (cmpWaterManager)
-				baseY = std::max(baseY, cmpWaterManager->GetWaterLevel(m_X, m_Z));
+				baseY = std::max(baseY, cmpWaterManager->GetWaterLevel(m_X, m_Z) - m_FloatDepth);
 		}
 		return m_Y + baseY;
 	}
@@ -692,7 +703,7 @@ public:
 			{
 				CmpPtr<ICmpWaterManager> cmpWaterManager(GetSystemEntity());
 				if (cmpWaterManager)
-					baseY = std::max(baseY, cmpWaterManager->GetExactWaterLevel(x, z));
+					baseY = std::max(baseY, cmpWaterManager->GetExactWaterLevel(x, z) - m_FloatDepth.ToFloat());
 			}
 		}
 
@@ -737,8 +748,8 @@ public:
 				CmpPtr<ICmpWaterManager> cmpWaterManager(GetSimContext(), SYSTEM_ENTITY);
 				if (cmpWaterManager)
 				{
-					baseY0 = std::max(baseY0, cmpWaterManager->GetExactWaterLevel(x0, z0));
-					baseY1 = std::max(baseY1, cmpWaterManager->GetExactWaterLevel(x1, z1));
+					baseY0 = std::max(baseY0, cmpWaterManager->GetExactWaterLevel(x0, z0) - m_FloatDepth.ToFloat());
+					baseY1 = std::max(baseY1, cmpWaterManager->GetExactWaterLevel(x1, z1) - m_FloatDepth.ToFloat());
 				}
 			}
 		}