Hello! I came here to send the solution to the puzzle since Puzzledude cannot do that himself.
The solution to the puzzle written out by Puzzledude:
"First undo all existing water with regular block. Then the goal is to bring water blocks 1 and 2 on the correct intersections (on the picture). You cut the third line with the regular block. The water blocks don't cut through, but wait on place of cut for Link to be on the other side. The blocks are then pushed back out once and once on the side. All three lines are cut now.
Finally you also bring the lower water block to section 4 to cut this line as well. You reach the indoors to push it back out using the regular block, which also can be rescued out in intersection 2. The water block on intersection 2 is moved out of the way. Once water block 1 is on intersection 4, you move water block 2 in again, to bring the regular block to intersection 5. Water block 4 is moved back out again. Regular block is pushed back up to cut the final intersection. You made it to the door, which is the goal. The door is already opened."
I hope that this helps. Also, Puzzledude would like to thank both of you for playing this hack.