After her creation, Wallace tattooed an identifying water lily onto her upper back. Soon after, before Water Lily, Wallace reflected upon the death of his father, noting the freedom it now gave him to continue building toward what he perceived as a perfect world.
Disbelieving Joseph's claim that Elle – designated Black Lotus – had been retired, Wallace provided Water Lily with a sword and commanded her to kill Elle. In carrying out this task, Water Lily made her way to Goodman's lab, where she eliminated the security detail and proceeded into the laboratory where Elle was contained in a memory machine. Water Lily fatally stabbed Goodman and made her way to the machine, severing the tank where Elle was held. She attacked Elle, but this was dodged and Elle asked Water Lily who she was, but was answered only with silence.
Soon, Elle noticed a resemblance between the two of them, to which Water Lily acknowledged, pointing out that she was a superior model tasked with eliminating obsolete replicants such as Elle. The two of them fought until they were interrupted by policemen, prompting the replicants to escape.
Water Lily soon found Officer Alani Davis at a Vid-Phon booth, preparing to reveal Wallace's involvement in the Black Lotus case. Water Lily impaled Davis with her sword, then used the phone to report Elle's escape to Wallace. He declined her offer to continue pursuing Elle, believing she would find her own way. Summoned to the former Tyrell Corporation headquarters, Water Lily left the booth, noticing that Davis had fled.
At the headquarters, Water Lily engaged in a sword fight with Elle in the late Eldon Tyrell's office. Soon, Wallace slipped away into the replicant manufacture wing and Elle followed, Water Lily pursuing close behind. There, she managed to stab Elle through the hand, but her opponent slid her hand down the blade and grabbed the hilt, disarming Water Lily. After another brief scuffle, Water Lily was embraced by Wallace, who recognized her loyalty and purity, but conceded that she was flawed. He then stabbed her through the chest with her own sword, killing her.