...I'm on a ship of some sort with my family. It is larger than a ski boat, smaller than a cruise ship, though it had several levels and a captain and crew (perhaps a large yacht?) We were supposed to be out in the ocean. I was on one of the upper level decks, not the top level, speaking with D when the entire ship began to fall, like an elevator. It did not tip, it simply went off the edge of whatever water we were on (imagine Wile E. Coyote running off the cliff several feet horizontal to the land before falling straight down) D and I raised up from the floor, I saw items that had been on end tables lifting up as well, and we reached for each other... trying to hold hands so we could brace for impact together.
Normally the "fall" of the nightmare is the end, and people wake up before impact. In this case, I went all the way through the fall, somehow landed without injury on the softer side of the carpeted floor, and jumped up. I yelled up a staircase to ask what the hell the captain was doing running the ship so close to a drop in elevation like that. It made no sense that the water would drop suddenly in the middle of the ocean, so I looked out the window and saw we were near cliffs, like a waterfall. Where did the waterfall come from? I looked down to the water below, it was night and there were spotlights shining down to the light blue water. I saw a person swimming. I yelled up to the captain to stop and save the swimmer, he said he didn't need to as all the passengers on our ship were accounted for. He wanted everyone up on the bridge. I entered a hallway that had a railing which looked down to the levels below (now it looked more like a cruise ship) I could see into the rooms one floor below, they were filled with water. The lights were still on, I could see several bodies in the water, seated in booths as if they were still waiting for dinner, but they were clearly dead. One woman had her back to the window, she wore a redish-orange shirt and had long blond hair which floated up around her head, her arms floated up and down with the movement of the water, yet she remained somewhat seated (although floating) in her booth.