Thank you Wjbender.
However, I think I figured out why I kept getting the terrain_get_z error. I had this code in my main() function:
function main()
{
...
level_terrain = level_ent; // CAUSING terrain_get_z ERROR WHEN REGION IS PRESENT.
terrain_tile(level_terrain); // CAUSING terrain_get_z ERROR WHEN REGION IS PRESENT.
...
}
When I commented out this code, I no longer get the terrain_get_z error, even if I have a region in my WED file.
I will try to make the region method work. If it does not, I will try your water_block() action method. Thank you.