diff --git a/ai.js b/ai.js
index a09474d..4d383f5 100644
--- a/ai.js
+++ b/ai.js
@@ -648,8 +648,21 @@ function deliverFruitTask(cit) {
 }
 
 function plantFruitTreeTask(cit) {
-  let px = cit.x + randInt(-50, 50);
-  let py = cit.y + randInt(-50, 50);
+  // Try to find a valid land position nearby
+  let px, py;
+  let attempts = 0;
+  do {
+    px = cit.x + randInt(-50, 50);
+    py = cit.y + randInt(-50, 50);
+    attempts++;
+    // Give up after too many attempts and find a new task
+    if (attempts > 20) {
+      cit.task = null;
+      cit.target = null;
+      return;
+    }
+  } while (!isValidPlacement(px, py));
+  
   moveToward(cit, px, py, 0.4);
   if(distance(cit.x, cit.y, px, py) < 10) {
     if(cit.carryingFruit >= FRUIT_PLANT_COST) {
diff --git a/events.js b/events.js
index cc4ee0b..6618732 100644
--- a/events.js
+++ b/events.js
@@ -1,3 +1,7 @@
+// Track mouse position for placement indicator
+let lastMouseWorldX = null;
+let lastMouseWorldY = null;
+
 /**********************************************************************
  * PAN & ZOOM
  **********************************************************************/
@@ -20,6 +24,13 @@ function setupPanZoom() {
       lastMouseX = e.clientX;
       lastMouseY = e.clientY;
     }
+    
+    // Update world coordinates for placement indicator
+    const rect = canvas.getBoundingClientRect();
+    let cx = e.clientX - rect.left;
+    let cy = e.clientY - rect.top;
+    lastMouseWorldX = (cx - (canvas.width/2) - offsetX) / scale;
+    lastMouseWorldY = (cy - (canvas.height/2) - offsetY) / scale;
   });
   
   canvas.addEventListener('wheel', (e) => {
@@ -127,6 +138,12 @@ function setupCanvasClick() {
     let worldX = (cx - (canvas.width/2) - offsetX) / scale;
     let worldY = (cy - (canvas.height/2) - offsetY) / scale;
 
+    // Check if the placement is valid (not in water)
+    if (!isValidPlacement(worldX, worldY)) {
+      logAction("Cannot build on water! Choose a land location.");
+      return;
+    }
+
     switch(purchaseMode) {
       case "House":
         if(money >= COST_HOUSE) {
diff --git a/game.js b/game.js
index 572207e..8c246e1 100644
--- a/game.js
+++ b/game.js
@@ -97,27 +97,53 @@ const WOLF_SPEED = 0.7; // Faster than rabbits
  * INIT WORLD
  **********************************************************************/
 function initWorld() {
-  // Normal trees
+  // Normal trees - only on land
   for(let i=0; i<15; i++) {
-    resources.push(createResource("Tree", randInt(-1000,1000), randInt(-1000,1000), 100));
+    let x, y;
+    do {
+      x = randInt(-1000,1000);
+      y = randInt(-1000,1000);
+    } while (!isValidPlacement(x, y));
+    resources.push(createResource("Tree", x, y, 100));
   }
-  // Fruit trees
+  
+  // Fruit trees - only on land
   for(let i=0; i<10; i++) {
-    resources.push(createResource("FruitTree", randInt(-1000,1000), randInt(-1000,1000), FRUIT_TREE_START_AMOUNT));
+    let x, y;
+    do {
+      x = randInt(-1000,1000);
+      y = randInt(-1000,1000);
+    } while (!isValidPlacement(x, y));
+    resources.push(createResource("FruitTree", x, y, FRUIT_TREE_START_AMOUNT));
   }
 
-  // Start with 1 citizen => always a "Builder"
-  let c = createCitizen(randomName(), randInt(-200,200), randInt(-200,200), "Builder");
+  // Start with 1 citizen => always a "Builder" - only on land
+  let cx, cy;
+  do {
+    cx = randInt(-200,200);
+    cy = randInt(-200,200);
+  } while (!isValidPlacement(cx, cy));
+  let c = createCitizen(randomName(), cx, cy, "Builder");
   citizens.push(c);
   logAction(`Initial Citizen joined: ${c.name} [Builder]`);
 
-  // Spawn some animals
+  // Spawn some animals - only on land
   for(let i=0; i<STARTING_RABBITS; i++) {
-    animals.push(createAnimal("Rabbit", randInt(-1000,1000), randInt(-1000,1000)));
+    let x, y;
+    do {
+      x = randInt(-1000,1000);
+      y = randInt(-1000,1000);
+    } while (!isValidPlacement(x, y));
+    animals.push(createAnimal("Rabbit", x, y));
   }
   
   for(let i=0; i<STARTING_WOLVES; i++) {
-    animals.push(createAnimal("Wolf", randInt(-1000,1000), randInt(-1000,1000)));
+    let x, y;
+    do {
+      x = randInt(-1000,1000);
+      y = randInt(-1000,1000);
+    } while (!isValidPlacement(x, y));
+    animals.push(createAnimal("Wolf", x, y));
   }
 
   requestAnimationFrame(update);
diff --git a/render.js b/render.js
index f9bb00f..75a63e9 100644
--- a/render.js
+++ b/render.js
@@ -31,6 +31,42 @@ function drawWorld() {
   animals.forEach((ani) => {
     if(!ani.dead) drawAnimal(ani);
   });
+  
+  // Draw placement indicator when in purchase mode
+  if (purchaseMode) {
+    drawPlacementIndicator();
+  }
+}
+
+// Draw a placement indicator at mouse position
+function drawPlacementIndicator() {
+  if (!lastMouseWorldX || !lastMouseWorldY) return;
+  
+  ctx.save();
+  ctx.translate(canvas.width/2 + offsetX, canvas.height/2 + offsetY);
+  ctx.scale(scale, scale);
+  
+  const isValid = isValidPlacement(lastMouseWorldX, lastMouseWorldY);
+  
+  // Draw indicator circle
+  ctx.beginPath();
+  ctx.arc(lastMouseWorldX, lastMouseWorldY, 15, 0, Math.PI*2);
+  ctx.strokeStyle = isValid ? "rgba(0, 255, 0, 0.7)" : "rgba(255, 0, 0, 0.7)";
+  ctx.lineWidth = 2/scale;
+  ctx.stroke();
+  
+  // Draw X if invalid
+  if (!isValid) {
+    ctx.beginPath();
+    ctx.moveTo(lastMouseWorldX - 10, lastMouseWorldY - 10);
+    ctx.lineTo(lastMouseWorldX + 10, lastMouseWorldY + 10);
+    ctx.moveTo(lastMouseWorldX + 10, lastMouseWorldY - 10);
+    ctx.lineTo(lastMouseWorldX - 10, lastMouseWorldY + 10);
+    ctx.strokeStyle = "rgba(255, 0, 0, 0.7)";
+    ctx.stroke();
+  }
+  
+  ctx.restore();
 }
 
 function drawTerrain() {
diff --git a/terrain.js b/terrain.js
index 2c860c5..e485b77 100644
--- a/terrain.js
+++ b/terrain.js
@@ -109,8 +109,8 @@ function generateTerrain(width, height, scale) {
       value /= 1.75; // Normalize
       
       // Determine terrain type based on noise value
-      // Increase water threshold to create more water areas
-      if (value < 0.0) {
+      // Lower water threshold to create more land areas
+      if (value < -0.3) {  // Changed from 0.0 to -0.3 to reduce water
         terrain[x][y] = TERRAIN_WATER;
       } else {
         terrain[x][y] = TERRAIN_GRASS;
diff --git a/utils.js b/utils.js
index 774fd2a..b263aa8 100644
--- a/utils.js
+++ b/utils.js
@@ -90,6 +90,14 @@ function knockback(ent, tx, ty, dist) {
   }
 }
 
+/**********************************************************************
+ * PLACEMENT VALIDATION
+ **********************************************************************/
+// Check if a position is valid for placement (not in water)
+function isValidPlacement(x, y) {
+  return !isWater(x, y);
+}
+
 /**********************************************************************
  * FINDERS
  **********************************************************************/