I’ve figured these out. Quoting myself in case anyone else runs into these and was wondering what to do.
For the water material not extending past a certain distance, you need to go to WaterMeshActor and then in the details panel find the “Mesh” tab. There are two things you can then change to extend the material. These are “Tile Size” and “Extent in Tiles”. I’m not sure what (if any) performance considerations this presents, or if it is better to increase one or the other, but this at least solves the basic issue I was having. Here’s a screenshot:
https://i.imgur.com/kM1URCR.png
For the water bodies affecting the landscape layers, you need to go to the WaterBrushManager and then navigate to the Settings tab in the details panel. There you need to make sure “Affect Weightmap” is checked and also add the specific layers you want to use in “Affected Weightmap Layers”.