The preferred three-hour cut of director Kevin Reynolds was drastically edited back to a 135-minute theatrical version by Kevin Costner and the studio, probably in an effort to recoup the film's inflated $175 million dollar budget (since Costner's previous 3-hour movie Wyatt Earp - Das Leben einer Legende (1994) had been a box office bomb). ABC later broadcast an extended TV version that restored almost 40 minutes of deleted scenes, which explain more about the world, the people who live there, the Smokers' religious beliefs and their ability to refine crude oil. The additional scenes also tie up several loose ends in the theatrical release. Being a TV special, this version was also censored for violence and language. A fan-edit of the film, called 'Waterworld: The Ulysses Cut' (named after a restored scene at the end), was later made in an attempt to create the most complete version of the movie. It was compiled from several broadcast versions, containing all of the additional footage from the TV version while restoring the previously censored parts. In an unexpected turn, the original distributor officially sanctioned this fan-edit by releasing it in a box-set with the other two versions. This Ulysses Cut was remastered in high-definition though, created with original footage rather than lower-quality broadcast material.
It is rumored that director Kevin Reynolds and Kevin Costner had a huge squabble over the film, resulting in Reynolds walking off the project, and leaving Costner to take over directing and oversee editing. Reynolds was quoted as saying that "Kevin Costner should only star in movies he directs. That way, he can work with his favorite actor and favorite director."
The floating atoll set used up all the available steel in the Hawaiian Islands. When more was required, it had to be flown in from California. The runway at Kona Airport actually had to be extended by a quarter mile to accommodate the heavy planes that had to land there.