This is an .ini tweak that I have forgotten and hope that someone here can name. It allowed the player to grab and move around unconscious npcs. This allows you to knock out a pirate and roll, roll, roll them into the IC harbor water where they will drown, and it is counted as a death and not a murder. It also allowed some grabbing and moving of an npc while they are awake and standing, but to a lesser degree.

I found it!

bAllowHavokGrabTheLiving=0

Change the 0 to 1.

Enjoy your drownings.