Child, man, and woman walking near the water.
The family is at the beach.
You cannot infer if by the water refers to the beach, or next to some water in a different place such as a pond or fountain.
exists s1 x1 x2 x3 x4 x5.(n_water(x5) & ne_nam_child(x1) & a_topic(s1) & subset_of(x3,s1) & near(x3,x5) & n_walking(x3) & of(x3,x4) & n_woman(x4) & subset_of(x1,s1) & rel(x1,x2) & n_man(x2))
exists p1 x1 x2.(n_beach(x2) & n_family(x1) & at(x1,x2))