Many listeners thought that this song was about having a party or dancing under water. It isn't. The water imagery is a metaphor for how people had to bend and jump through hoops to deal with life in America at the time.
Pay attention to the line, "With the rhythm it takes to dance to what we have to live through, you can dance under water and not get wet!" If you listen, you'll hear a "fish" saying, "It's deep!" in the background. They also change up the chorus to say, "Starring most of you loops," saying this life is like a movie and you're starring in it.
Simon - Atlanta, GA