OK, I tried using GPU sprites and I got some pretty convincing flowing results. It doesn’t retain volume, and like all GPU particles, it will fall right through anything the camera can’t see, and there is some degree of overdraw necessary, but for the most part, it works! You need to use the top settings for proper simulation, and the bottom settings are recommended for visual appearance:
Collision Resilience - 0, or a low value below .05. Water should flow, not bounce
Collision Friction - 0. More friction results in more viscosity, but should be kept low to allow flow.
Collision Response - Bounce
Drag - 0-0.7 works great. More drag results in more viscosity, and a “heavier” appearing liquid. Water is pretty heavy, but it’s not sludge, and has little air resistance.
Const Acceleration - -400 in the Z direction works nicely. A lower value would increase the force of gravity, but then the particles move too quickly.
Screen Alignment - PSA Velocity
Size by Speed, Speed Scale - 0,1
Size by Speed, Scale - 0,2