There are many different ways to model water. For modeling large bodies of still water like a lake, two-part polyester resin is probably the best choice. One word of warning when working with polyester resin, the catalyst is a chemical called methyl ethyl ketone peroxide. This is not the same MEK as in lacquer thinner. Always wear safety glasses when handling this substance. A single drop splashed into your eye will permanently blind you within seconds.
Always remember; safety first.
Make sure the diorama is on a perfectly level surface. Nothing looks more phony than water on a slant. Paint the lake bottom as desired, usually shades of brown, olive, etc, lightening the color towards the edges. Make sure the paint is bone-dry before pouring the resin. You can tint the resin with available resin dyes or "glass paint", (used to make faux stained glass). If fairly deep water is desired, don't pour it all in at once, pour it in layers, gradually lightening the tint as you go. This will add to the impression of depth. Pay close attention to the amount of catalyst you use, too little and it will remain tacky forever, too much and it will craze and crack. It could even catch on fire! [:0] (Not likely, but it is possible) Ripples can be added with a blow dryer or heat gun before the resin sets completely, but be careful not to blow dust onto the surface. I would recommend practicing with small amounts before pouring out gallons of this stuff. Use a respirator and plenty of ventilation, huffing this stuff will give you a whopper of a headache.