Index: docs/landscape.html
===================================================================
--- docs/landscape.html	(revision 27200)
+++ docs/landscape.html	(working copy)
@@ -975,7 +975,7 @@
      </li>
      <li>m6 bits 5..3: the station type (rail, airport, truck, bus, oilrig, dock, buoy, waypoint)</li>
      <li>m6 bit 2: pbs reservation state for railway stations/waypoints</li>
-
+     <li>m6 bit 0: river restoration flag for whenever a canal is removed</li>
      <li>m7 bits 4..0: <a href="#OwnershipInfo">owner</a> of road (road stops)</li>
      <li>m7 bits 7..6: present road types (road stops)</li>
      <li>m7: animation frame (railway stations/waypoints, airports)</li>
@@ -1088,6 +1088,7 @@
        </tr>
       </table>
      </li>
+	 <li>m6 bit 0: river restoration flag for whenever a canal is removed</li>
     </ul>
    </td>
   </tr>
@@ -1429,6 +1430,7 @@
      </li>
      <li>m6 bits 5..3: random triggers (NewGRF)</li>
      <li>m6 bit 2: bit 8 of type (see m5)</li>
+	 <li>m6 bit 0: river restoration flag for whenever a canal is removed</li>
      <li>m7: animation frame</li>
     </ul>
    </td>
@@ -1599,6 +1601,7 @@
      <li>m2: index into the array of objects, bits 0 to 15 (upper bits in m5)</li>
      <li>m3: random bits</li>
      <li>m5: index into the array of objects, bits 16 to 23 (lower bits in m2)</li>
+	 <li>m6 bit 0: river restoration flag for whenever a canal is removed</li>
      <li>m7: animation counter</li>
     </ul>
    </td>
Index: docs/landscape_grid.html
===================================================================
--- docs/landscape_grid.html	(revision 27200)
+++ docs/landscape_grid.html	(working copy)
@@ -236,7 +236,7 @@
       <td class="bits"><span class="free">OOOO OOOO</span></td>
       <td class="bits"><span class="free">OOOO OOOO</span></td>
       <td class="bits"><span class="option">~~~~ ~</span>XXX</td>
-      <td class="bits"><span class="free">OO</span>XX X<span class="free">OOO</span></td>
+      <td class="bits"><span class="free">OO</span>XX X<span class="free">OO</span>X</td>
       <td class="bits"><span class="free">OOOO OOOO</span></td>
     </tr>
     <tr>
@@ -260,7 +260,7 @@
       <td class="bits"><span class="free">OOOO OOOO</span></td>
       <td class="bits"><span class="free">OOOO OOOO</span></td>
       <td class="bits"><span class="option">~~~~ ~~~~</span></td>
-      <td class="bits"><span class="free">OO</span>XX X<span class="free">OOO</span></td>
+      <td class="bits"><span class="free">OO</span>XX X<span class="free">OO</span>X</td>
       <td class="bits"><span class="free">OOOO OOOO</span></td>
     </tr>
     <tr>
@@ -272,7 +272,7 @@
       <td class="bits"><span class="free">OOOO OOOO</span></td>
       <td class="bits"><span class="free">OOOO OOOO</span></td>
       <td class="bits"><span class="option">~~~~ ~~~~</span></td>
-      <td class="bits"><span class="free">OO</span>XX X<span class="free">OOO</span></td>
+      <td class="bits"><span class="free">OO</span>XX X<span class="free">OO</span>X</td>
       <td class="bits"><span class="free">OOOO OOOO</span></td>
     </tr>
     <tr>
@@ -297,8 +297,8 @@
       <td class="bits"><span class="free">OOOO OOOO</span></td>
       <td class="bits">XXXX XXXX</td>
       <td class="bits">-inherit-</td>
+      <td class="bits"><span class="free">OOOO OOO</span>X</td>
       <td class="bits"><span class="free">OOOO OOOO</span></td>
-      <td class="bits"><span class="free">OOOO OOOO</span></td>
     </tr>
     <tr>
       <td class="caption">shipdepot</td>
@@ -309,8 +309,8 @@
       <td class="bits"><span class="free">OOOO OOOO</span></td>
       <td class="bits"><span class="free">OOOO OOOO</span></td>
       <td class="bits">-inherit-</td>
+      <td class="bits"><span class="free">OOOO OOO</span>X</td>
       <td class="bits"><span class="free">OOOO OOOO</span></td>
-      <td class="bits"><span class="free">OOOO OOOO</span></td>
     </tr>
     <tr>
       <td>8</td>
@@ -322,7 +322,7 @@
       <td class="bits">XXXX XXXX</td>
       <td class="bits">XXXX XXXX</td>
       <td class="bits">XXXX XXXX</td>
-      <td class="bits"><span class="free">OO</span>XX XX<span class="free">OO</span></td>
+      <td class="bits"><span class="free">OO</span>XX XX<span class="free">O</span>X</td>
       <td class="bits">XXXX XXXX</td>
     </tr>
     <tr>
@@ -360,7 +360,7 @@
       <td class="bits">XXXX XXXX</td>
       <td class="bits"><span class="free">OOOO OOOO</span></td>
       <td class="bits">XXXX XXXX</td>
-      <td class="bits"><span class="free">OOOO OOOO</span></td>
+      <td class="bits"><span class="free">OOOO OOO</span>X</td>
       <td class="bits">XXXX XXXX</td>
     </tr>
   </tbody>
Index: src/industry_cmd.cpp
===================================================================
--- src/industry_cmd.cpp	(revision 27200)
+++ src/industry_cmd.cpp	(working copy)
@@ -1755,9 +1755,9 @@
 			i->location.Add(cur_tile);
 
 			WaterClass wc = (IsWaterTile(cur_tile) ? GetWaterClass(cur_tile) : WATER_CLASS_INVALID);
-
+			bool river = HasBit(_me[cur_tile].m6, 0);
 			DoCommand(cur_tile, 0, 0, DC_EXEC | DC_NO_TEST_TOWN_RATING | DC_NO_MODIFY_TOWN_RATING, CMD_LANDSCAPE_CLEAR);
-
+			if (river) SB(_me[cur_tile].m6, 0, 1, 1);
 			MakeIndustry(cur_tile, i->index, it->gfx, Random(), wc);
 
 			if (_generating_world) {
Index: src/saveload/company_sl.cpp
===================================================================
--- src/saveload/company_sl.cpp	(revision 27200)
+++ src/saveload/company_sl.cpp	(working copy)
@@ -179,8 +179,11 @@
 						if (IsShipDepot(tile)) c->infrastructure.water += LOCK_DEPOT_TILE_FACTOR;
 						if (IsLock(tile) && GetLockPart(tile) == LOCK_PART_MIDDLE) {
 							/* The middle tile specifies the owner of the lock. */
-							c->infrastructure.water += 3 * LOCK_DEPOT_TILE_FACTOR; // the middle tile specifies the owner of the
-							break; // do not count the middle tile as canal
+							c->infrastructure.water += 3 * LOCK_DEPOT_TILE_FACTOR;
+
+							/* Only count the middle tile as canal if the tile is not river. */
+							if (GetWaterClass(tile) != WATER_CLASS_RIVER) c->infrastructure.water++;
+							break;
 						}
 					}
 				}
Index: src/station_cmd.cpp
===================================================================
--- src/station_cmd.cpp	(revision 27200)
+++ src/station_cmd.cpp	(working copy)
@@ -2511,7 +2511,7 @@
 
 	/* Get the water class of the water tile before it is cleared.*/
 	WaterClass wc = GetWaterClass(tile_cur);
-
+	bool river = HasBit(_me[tile_cur].m6, 0);
 	ret = DoCommand(tile_cur, 0, 0, flags, CMD_LANDSCAPE_CLEAR);
 	if (ret.Failed()) return ret;
 
@@ -2551,7 +2551,7 @@
 		DirtyCompanyInfrastructureWindows(st->owner);
 
 		MakeDock(tile, st->owner, st->index, direction, wc);
-
+		if (river) SB(_me[tile + TileOffsByDiagDir(direction)].m6, 0, 1, 1);
 		st->UpdateVirtCoord();
 		UpdateStationAcceptance(st, false);
 		st->RecomputeIndustriesNear();
Index: src/table/build_industry.h
===================================================================
--- src/table/build_industry.h	(revision 27200)
+++ src/table/build_industry.h	(working copy)
@@ -293,6 +293,19 @@
 	MK(-2, -4, 255),
 	MK(-3, -4, 255),
 	MK(2, 0, 255),
+	MK(2, -1, 255),
+	MK(1, -1, 255),
+	MK(0, -1, 255),
+	MK(-1, -1, 255),
+	MK(-1, 0, 255),
+	MK(-1, 1, 255),
+	MK(-1, 2, 255),
+	MK(-1, 3, 255),
+	MK(0, 3, 255),
+	MK(1, 3, 255),
+	MK(2, 3, 255),
+	MK(2, 2, 255),
+	MK(2, 1, 255),
 	MKEND
 };
 
Index: src/water_cmd.cpp
===================================================================
--- src/water_cmd.cpp	(revision 27200)
+++ src/water_cmd.cpp	(working copy)
@@ -39,7 +39,7 @@
 #include "company_base.h"
 #include "company_gui.h"
 #include "newgrf_generic.h"
-
+#include "cheat_type.h"
 #include "table/strings.h"
 
 #include "safeguards.h"
@@ -123,6 +123,8 @@
 	CommandCost cost = CommandCost(EXPENSES_CONSTRUCTION, _price[PR_BUILD_DEPOT_SHIP]);
 
 	bool add_cost = !IsWaterTile(tile);
+	bool river1 = HasBit(_me[tile].m6, 0);
+	bool river2 = HasBit(_me[tile2].m6, 0);
 	CommandCost ret = DoCommand(tile, 0, 0, flags | DC_AUTO, CMD_LANDSCAPE_CLEAR);
 	if (ret.Failed()) return ret;
 	if (add_cost) {
@@ -145,7 +147,8 @@
 		}
 		Company::Get(_current_company)->infrastructure.water += 2 * LOCK_DEPOT_TILE_FACTOR;
 		DirtyCompanyInfrastructureWindows(_current_company);
-
+		if (river1) SB(_me[tile].m6, 0, 1, 1);
+		if (river2) SB(_me[tile2].m6, 0, 1, 1);
 		MakeShipDepot(tile,  _current_company, depot->index, DEPOT_PART_NORTH, axis, wc1);
 		MakeShipDepot(tile2, _current_company, depot->index, DEPOT_PART_SOUTH, axis, wc2);
 		MarkTileDirtyByTile(tile);
@@ -192,7 +195,7 @@
 
 		wc = WATER_CLASS_CANAL;
 	}
-
+	bool river = HasBit(_me[tile].m6, 0);
 	/* Zero map array and terminate animation */
 	DoClearSquare(tile);
 
@@ -199,7 +202,9 @@
 	/* Maybe change to water */
 	switch (wc) {
 		case WATER_CLASS_SEA:   MakeSea(tile);                break;
-		case WATER_CLASS_CANAL: MakeCanal(tile, o, Random()); break;
+		case WATER_CLASS_CANAL: MakeCanal(tile, o, Random());
+			if (river) SB(_me[tile].m6, 0, 1, 1);
+			break;
 		case WATER_CLASS_RIVER: MakeRiver(tile, Random());    break;
 		default: break;
 	}
@@ -258,9 +263,14 @@
 
 	/* middle tile */
 	WaterClass wc_middle = IsWaterTile(tile) ? GetWaterClass(tile) : WATER_CLASS_CANAL;
-	ret = DoCommand(tile, 0, 0, flags, CMD_LANDSCAPE_CLEAR);
-	if (ret.Failed()) return ret;
-	cost.AddCost(ret);
+		
+	if (!IsWaterTile(tile)) {
+		ret = DoCommand(tile, 0, 0, flags, CMD_LANDSCAPE_CLEAR);
+		if (ret.Failed()) return ret;
+		cost.AddCost(ret);
+		/* Add an extra cost only if not building on a river. */
+		cost.AddCost(_price[PR_BUILD_CANAL]);
+	}
 
 	/* lower tile */
 	WaterClass wc_lower = IsWaterTile(tile - delta) ? GetWaterClass(tile - delta) : WATER_CLASS_CANAL;
@@ -291,7 +301,8 @@
 	if (IsBridgeAbove(tile) || IsBridgeAbove(tile - delta) || IsBridgeAbove(tile + delta)) {
 		return_cmd_error(STR_ERROR_MUST_DEMOLISH_BRIDGE_FIRST);
 	}
-
+	bool river_lower = HasBit(_me[tile - delta].m6, 0);
+	bool river_upper = HasBit(_me[tile + delta].m6, 0);
 	if (flags & DC_EXEC) {
 		/* Update company infrastructure counts. */
 		Company *c = Company::GetIfValid(_current_company);
@@ -298,12 +309,14 @@
 		if (c != NULL) {
 			/* Counts for the water. */
 			if (!IsWaterTile(tile - delta)) c->infrastructure.water++;
+			if (!IsWaterTile(tile)) c->infrastructure.water++;
 			if (!IsWaterTile(tile + delta)) c->infrastructure.water++;
 			/* Count for the lock itself. */
 			c->infrastructure.water += 3 * LOCK_DEPOT_TILE_FACTOR; // Lock is three tiles.
 			DirtyCompanyInfrastructureWindows(_current_company);
 		}
-
+		if (river_lower) SB(_me[tile - delta].m6, 0, 1, 1);
+		if (river_upper) SB(_me[tile + delta].m6, 0, 1, 1);
 		MakeLock(tile, _current_company, dir, wc_lower, wc_upper, wc_middle);
 		MarkTileDirtyByTile(tile);
 		MarkTileDirtyByTile(tile - delta);
@@ -324,6 +337,8 @@
  */
 static CommandCost RemoveLock(TileIndex tile, DoCommandFlag flags)
 {
+	CommandCost cost(EXPENSES_CONSTRUCTION);
+	
 	if (GetTileOwner(tile) != OWNER_NONE) {
 		CommandCost ret = CheckTileOwnership(tile);
 		if (ret.Failed()) return ret;
@@ -337,6 +352,9 @@
 	if (ret.Succeeded()) ret = EnsureNoVehicleOnGround(tile - delta);
 	if (ret.Failed()) return ret;
 
+	/* Add an extra cost only if it was not built on a river. */
+	if (GetWaterClass(tile) != WATER_CLASS_RIVER) cost.AddCost(_price[PR_CLEAR_CANAL]);
+
 	if (flags & DC_EXEC) {
 		/* Remove middle part from company infrastructure count. */
 		Company *c = Company::GetIfValid(GetTileOwner(tile));
@@ -348,6 +366,7 @@
 		if (GetWaterClass(tile) == WATER_CLASS_RIVER) {
 			MakeRiver(tile, Random());
 		} else {
+			if (c != NULL) c->infrastructure.water--; // Make sure it's not a leftover or neutral lock.
 			DoClearSquare(tile);
 		}
 		MakeWaterKeepingClass(tile + delta, GetTileOwner(tile + delta));
@@ -357,7 +376,9 @@
 		MarkCanalsAndRiversAroundDirty(tile + delta);
 	}
 
-	return CommandCost(EXPENSES_CONSTRUCTION, _price[PR_CLEAR_LOCK]);
+	cost.AddCost(_price[PR_CLEAR_LOCK]);
+	return cost;
+
 }
 
 /**
@@ -419,6 +440,7 @@
 		if (IsTileType(tile, MP_WATER) && (!IsTileOwner(tile, OWNER_WATER) || wc == WATER_CLASS_SEA)) continue;
 
 		bool water = IsWaterTile(tile);
+		bool river = HasTileWaterClass(tile) && GetWaterClass(tile) == WATER_CLASS_RIVER;
 		ret = DoCommand(tile, 0, 0, flags | DC_FORCE_CLEAR_TILE, CMD_LANDSCAPE_CLEAR);
 		if (ret.Failed()) return ret;
 
@@ -442,6 +464,7 @@
 					/* FALL THROUGH */
 
 				default:
+					if (river) SB(_me[tile].m6, 0, 1, 1);
 					MakeCanal(tile, _current_company, Random());
 					if (Company::IsValidID(_current_company)) {
 						Company::Get(_current_company)->infrastructure.water++;
@@ -465,6 +488,7 @@
 
 static CommandCost ClearTile_Water(TileIndex tile, DoCommandFlag flags)
 {
+	bool canal_on_river = HasBit(_me[tile].m6, 0);
 	switch (GetWaterTileType(tile)) {
 		case WATER_TILE_CLEAR: {
 			if (flags & DC_NO_WATER) return_cmd_error(STR_ERROR_CAN_T_BUILD_ON_WATER);
@@ -486,12 +510,16 @@
 				if (ret.Failed()) return ret;
 			}
 
+			if (IsRiver(tile) && _game_mode == GM_NORMAL && !_cheats.magic_bulldozer.value) base_cost = 0;
+
 			if (flags & DC_EXEC) {
 				if (IsCanal(tile) && Company::IsValidID(owner)) {
 					Company::Get(owner)->infrastructure.water--;
 					DirtyCompanyInfrastructureWindows(owner);
 				}
+				bool river = HasTileWaterClass(tile) && GetWaterClass(tile) == WATER_CLASS_RIVER;
 				DoClearSquare(tile);
+				if ((canal_on_river || river) && _game_mode == GM_NORMAL && !_cheats.magic_bulldozer.value) MakeRiver(tile, Random());
 				MarkCanalsAndRiversAroundDirty(tile);
 			}
 
@@ -1275,9 +1303,15 @@
 	bool is_lock_middle = IsLock(tile) && GetLockPart(tile) == LOCK_PART_MIDDLE;
 
 	/* No need to dirty company windows here, we'll redraw the whole screen anyway. */
-	if (is_lock_middle) Company::Get(old_owner)->infrastructure.water -= 3 * LOCK_DEPOT_TILE_FACTOR; // Lock has three parts.
+	if (is_lock_middle) {
+		Company::Get(old_owner)->infrastructure.water -= 3 * LOCK_DEPOT_TILE_FACTOR; // Lock has three parts.
+		if (GetWaterClass(tile) == WATER_CLASS_CANAL) Company::Get(old_owner)->infrastructure.water--;
+	}
 	if (new_owner != INVALID_OWNER) {
-		if (is_lock_middle) Company::Get(new_owner)->infrastructure.water += 3 * LOCK_DEPOT_TILE_FACTOR; // Lock has three parts.
+		if (is_lock_middle) {
+			Company::Get(new_owner)->infrastructure.water += 3 * LOCK_DEPOT_TILE_FACTOR; // Lock has three parts.
+			if (GetWaterClass(tile) == WATER_CLASS_CANAL) Company::Get(new_owner)->infrastructure.water++;
+		}
 		/* Only subtract from the old owner here if the new owner is valid,
 		 * otherwise we clear ship depots and canal water below. */
 		if (GetWaterClass(tile) == WATER_CLASS_CANAL && !is_lock_middle) {
@@ -1313,6 +1347,7 @@
 {
 	/* Canals can't be terraformed */
 	if (IsWaterTile(tile) && IsCanal(tile)) return_cmd_error(STR_ERROR_MUST_DEMOLISH_CANAL_FIRST);
+	if (IsWaterTile(tile) && IsRiver(tile)) return_cmd_error(STR_ERROR_SITE_UNSUITABLE);
 
 	return DoCommand(tile, 0, 0, flags, CMD_LANDSCAPE_CLEAR);
 }