>>714352208 (OP)dwarf fortress. its sort of like timberborn with violence. you can build drowning traps, or wash invaders into a ravine. worms revolution has some water physics too. i dont know if the later ones have it, i havent seen it in wmd. all the worms games technically have water hazards, but its just an out of bounds barrier in most games, while in revolution it can be dropped on people to move them into bad positions or off the map.
not water physics exactly, but you can flood the map in the original age of wonders, a psychotic strategy usually associated with amphibious lizardmen.