diff --git a/apps/openmw/mwbase/soundmanager.hpp b/apps/openmw/mwbase/soundmanager.hpp
index a91149777d..b313839363 100644
--- a/apps/openmw/mwbase/soundmanager.hpp
+++ b/apps/openmw/mwbase/soundmanager.hpp
@@ -153,7 +153,7 @@ namespace MWBase
 
             virtual void update(float duration) = 0;
 
-            virtual void setListenerPosDir(const osg::Vec3f &pos, const osg::Vec3f &dir, const osg::Vec3f &up) = 0;
+            virtual void setListenerPosDir(const osg::Vec3f &pos, const osg::Vec3f &dir, const osg::Vec3f &up, bool underwater) = 0;
 
             virtual void updatePtr (const MWWorld::Ptr& old, const MWWorld::Ptr& updated) = 0;
 
diff --git a/apps/openmw/mwrender/renderingmanager.cpp b/apps/openmw/mwrender/renderingmanager.cpp
index f6403a9259..c0a907f70d 100644
--- a/apps/openmw/mwrender/renderingmanager.cpp
+++ b/apps/openmw/mwrender/renderingmanager.cpp
@@ -387,6 +387,7 @@ namespace MWRender
 
         osg::Vec3f focal, cameraPos;
         mCamera->getPosition(focal, cameraPos);
+        mCurrentCameraPos = cameraPos;
         if (mWater->isUnderwater(cameraPos))
         {
             setFogColor(mUnderwaterColor * mUnderwaterWeight + mFogColor * (1.f-mUnderwaterWeight));
@@ -865,6 +866,11 @@ namespace MWRender
         return mCamera.get();
     }
 
+    const osg::Vec3f &RenderingManager::getCameraPosition() const
+    {
+        return mCurrentCameraPos;
+    }
+
     void RenderingManager::togglePOV()
     {
         mCamera->toggleViewMode();
diff --git a/apps/openmw/mwrender/renderingmanager.hpp b/apps/openmw/mwrender/renderingmanager.hpp
index 203df22699..a0ea14cb4a 100644
--- a/apps/openmw/mwrender/renderingmanager.hpp
+++ b/apps/openmw/mwrender/renderingmanager.hpp
@@ -159,6 +159,7 @@ namespace MWRender
         void resetCamera();
         float getCameraDistance() const;
         Camera* getCamera();
+        const osg::Vec3f& getCameraPosition() const;
         void togglePOV();
         void togglePreviewMode(bool enable);
         bool toggleVanityMode(bool enable);
@@ -188,6 +189,7 @@ namespace MWRender
         std::auto_ptr<NpcAnimation> mPlayerAnimation;
         osg::ref_ptr<SceneUtil::PositionAttitudeTransform> mPlayerNode;
         std::auto_ptr<Camera> mCamera;
+        osg::Vec3f mCurrentCameraPos;
 
         osg::ref_ptr<StateUpdater> mStateUpdater;
 
diff --git a/apps/openmw/mwscript/cellextensions.cpp b/apps/openmw/mwscript/cellextensions.cpp
index 5dd3cf4119..b6f7229e03 100644
--- a/apps/openmw/mwscript/cellextensions.cpp
+++ b/apps/openmw/mwscript/cellextensions.cpp
@@ -144,7 +144,9 @@ namespace MWScript
                         return;
                     }
                     MWWorld::CellStore *cell = MWMechanics::getPlayer().getCell();
-                    if (cell->getCell()->hasWater())
+                    if (cell->isExterior())
+                        runtime.push(0.f); // vanilla oddity, return 0 even though water is actually at -1
+                    else if (cell->getCell()->hasWater())
                         runtime.push (cell->getWaterLevel());
                     else
                         runtime.push (-std::numeric_limits<float>::max());
diff --git a/apps/openmw/mwsound/soundmanagerimp.cpp b/apps/openmw/mwsound/soundmanagerimp.cpp
index ceff1a6191..3b24e26ab4 100644
--- a/apps/openmw/mwsound/soundmanagerimp.cpp
+++ b/apps/openmw/mwsound/soundmanagerimp.cpp
@@ -946,16 +946,13 @@ namespace MWSound
         mOutput->finishUpdate();
     }
 
-    void SoundManager::setListenerPosDir(const osg::Vec3f &pos, const osg::Vec3f &dir, const osg::Vec3f &up)
+    void SoundManager::setListenerPosDir(const osg::Vec3f &pos, const osg::Vec3f &dir, const osg::Vec3f &up, bool underwater)
     {
         mListenerPos = pos;
         mListenerDir = dir;
         mListenerUp  = up;
 
-        MWWorld::Ptr player = MWMechanics::getPlayer();
-        const MWWorld::CellStore *cell = player.getCell();
-
-        mListenerUnderwater = ((cell->getCell()->mData.mFlags&ESM::Cell::HasWater) && mListenerPos.z() < cell->getWaterLevel());
+        mListenerUnderwater = underwater;
     }
 
     void SoundManager::updatePtr(const MWWorld::Ptr &old, const MWWorld::Ptr &updated)
diff --git a/apps/openmw/mwsound/soundmanagerimp.hpp b/apps/openmw/mwsound/soundmanagerimp.hpp
index 9c090585b9..1f1a5cd6b1 100644
--- a/apps/openmw/mwsound/soundmanagerimp.hpp
+++ b/apps/openmw/mwsound/soundmanagerimp.hpp
@@ -218,7 +218,7 @@ namespace MWSound
 
         virtual void update(float duration);
 
-        virtual void setListenerPosDir(const osg::Vec3f &pos, const osg::Vec3f &dir, const osg::Vec3f &up);
+        virtual void setListenerPosDir(const osg::Vec3f &pos, const osg::Vec3f &dir, const osg::Vec3f &up, bool underwater);
 
         virtual void updatePtr (const MWWorld::Ptr& old, const MWWorld::Ptr& updated);
 
diff --git a/apps/openmw/mwworld/cellstore.cpp b/apps/openmw/mwworld/cellstore.cpp
index e9f9c5cd1b..5832a6727f 100644
--- a/apps/openmw/mwworld/cellstore.cpp
+++ b/apps/openmw/mwworld/cellstore.cpp
@@ -296,6 +296,8 @@ namespace MWWorld
 
     float CellStore::getWaterLevel() const
     {
+        if (isExterior())
+            return -1;
         return mWaterLevel;
     }
 
diff --git a/apps/openmw/mwworld/scene.cpp b/apps/openmw/mwworld/scene.cpp
index c6b50aae3e..45c94b6d9a 100644
--- a/apps/openmw/mwworld/scene.cpp
+++ b/apps/openmw/mwworld/scene.cpp
@@ -265,7 +265,7 @@ namespace MWWorld
 
             mRendering.addCell(cell);
             bool waterEnabled = cell->getCell()->hasWater() || cell->isExterior();
-            float waterLevel = cell->isExterior() ? -1.f : cell->getWaterLevel();
+            float waterLevel = cell->getWaterLevel();
             mRendering.setWaterEnabled(waterEnabled);
             if (waterEnabled)
             {
diff --git a/apps/openmw/mwworld/worldimp.cpp b/apps/openmw/mwworld/worldimp.cpp
index 6bced30c45..22485ed92e 100644
--- a/apps/openmw/mwworld/worldimp.cpp
+++ b/apps/openmw/mwworld/worldimp.cpp
@@ -1601,18 +1601,23 @@ namespace MWWorld
     void World::updateSoundListener()
     {
         const ESM::Position& refpos = getPlayerPtr().getRefData().getPosition();
-        osg::Vec3f playerPos = refpos.asVec3();
+        osg::Vec3f listenerPos;
 
-        playerPos.z() += 1.85f * mPhysics->getHalfExtents(getPlayerPtr()).z();
+        if (isFirstPerson())
+            listenerPos = mRendering->getCameraPosition();
+        else
+            listenerPos = refpos.asVec3() + osg::Vec3f(0, 0, 1.85f * mPhysics->getHalfExtents(getPlayerPtr()).z());
 
-        osg::Quat playerOrient = osg::Quat(refpos.rot[1], osg::Vec3f(0,-1,0)) *
+        osg::Quat listenerOrient = osg::Quat(refpos.rot[1], osg::Vec3f(0,-1,0)) *
                 osg::Quat(refpos.rot[0], osg::Vec3f(-1,0,0)) *
                 osg::Quat(refpos.rot[2], osg::Vec3f(0,0,-1));
 
-        osg::Vec3f forward = playerOrient * osg::Vec3f(0,1,0);
-        osg::Vec3f up = playerOrient * osg::Vec3f(0,0,1);
+        osg::Vec3f forward = listenerOrient * osg::Vec3f(0,1,0);
+        osg::Vec3f up = listenerOrient * osg::Vec3f(0,0,1);
 
-        MWBase::Environment::get().getSoundManager()->setListenerPosDir(playerPos, forward, up);
+        bool underwater = isUnderwater(getPlayerPtr().getCell(), listenerPos);
+
+        MWBase::Environment::get().getSoundManager()->setListenerPosDir(listenerPos, forward, up, underwater);
     }
 
     void World::updateWindowManager ()