The German Shepherd is walking in the body of water.
The dog is outside.
The dog could technically be inside or outside, depending on the location of the water.
exists e1 s1 x1 x2 x3.(n_body(x2) & ne_nam_shepherd(x1) & a_german(s1) & Theme(s1,x1) & in(e1,x2) & of(x2,x3) & n_water(x3) & Actor(e1,x1) & v_walk(e1))
exists s1 x1.(n_dog(x1) & Theme(s1,x1) & a_outside(s1))