The question
I wanted a terrain, a big mountain, and an unlimited water source near the top. The water should follow the shape of the land and find its own way down until it reached the ocean. "Is this possible in Unity, and if so, how would I go about achieving it?"
One of Unity's developers answered: it could be done, but it would take serious research in any engine. There was also a shortcut: run the water as a grid that only stores how high the water stands at each point. No overhangs, no caves, just height.
My reply ended with: "it will be on the very bottom of the todo list."
Fifteen years later
It's the whole game. The water in MUCKWORKS runs on exactly that kind of grid. It flows downhill, fills every hole, follows the channels you dig and wears your dirt walls down. Where it meets lava, the lava turns to stone.