Just out of curiosity and to see what everyone else is using to see if there's something better out there:

What underwater mod are you using and why? Note, this isn't about surface water mods, but mods that change the murkiness of underwater.

I use http://www.nexusmods.com/oblivion/mods/17411/? by dyfed_99. I like it because it makes underwater areas slightly less murky without making the water unrealistically clear.

http://www.nexusmods.com/oblivion/mods/6680/? . Works for Vanilla, SI, dungeons, etc.

wouldn't liquidwater also satisfy you ?

That's what I use too. I also use MMM Diverse Water Life and tried to use Alive Waters No Fish Addition, but also seem to have pathgrid problems when using any of the AW mods. IE NPCs walking aimlessly in place around water, which is especially true with Better Cities Waterfront. I'm wondering if it has something to do with the Clearer Underwater mod. It's marked for merging via the Bash Patch, but whenever I merged it in the past, the mod was overrode by something else and the water was vanilla again.

OBGE Liquidwater? If so, I don't use it because the reflective water taxes my system pretty heavily, especially with Better Cities Waterfront area.

I use Skyrimized Waters. Very good mod for underwater aswell. http://www.nexusmods.com/oblivion/mods/41599/?

For underwater vegetation textures I use The Imperial Aquatics http://www.nexusmods.com/oblivion/mods/45208/?

And as for Alive Waters I use it aswell, but with WalkerInShadows patch Alive Waters Updated which resolved all problems http://www.nexusmods.com/oblivion/mods/44069/?

I use Walker in Shadows updated version of Alive Waters as well, and have no issues other than occassional fish flopping on shore or the deck of a boat.

Carlos thanks for pointing the imperial acquatic textures. Really interesting!