The Water Demon was a demon that manifested in the form of a wave of water and made most of the people who died in the sinking of the Lady Anne to swear allegiance to him. He promised that they would be imprisoned in the ship for 100 years and then be free, but it was then revealed that he lied and wanted to make the souls his prisoners again. He nearly succeeded when he was about to take back Lucious and Jessica, but was beaten when the Ghostbusters caught him off guard and trapped him.