The most common and most likely answer to this crossword clue is the 7 letter word AGROUND
I've seen this crossword clue in The Times
A
G
R
O
U
N
D
More clues leading to the result AGROUND
- A good circuit — but you won't be able to move after running it!
- Unable to sail in a grand circle
- Out of water, area reduced to dust?
- Dragon roaming about for all to see, stranded?
- Unable to launch Silver Bullet
- A good set of drinks on the rocks?
- Touching a bottom
- Silver bullet lodged in bottom
- Receiving caning at last, roughly on the bottom
- One song over
Buddy explains!

The straight part
We know that "Out of water" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case out of water = aground.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does AGROUND mean?
AGROUND adjective- (of a normally floating craft) Resting on the bottom.
- (by extension) at a loss, ruined, with no way out
- (of a normally floating craft) Resting on the bottom.