diff --git a/src/object_cmd.cpp b/src/object_cmd.cpp
index cedec41887..0ddcf3664d 100644
--- a/src/object_cmd.cpp
+++ b/src/object_cmd.cpp
@@ -166,7 +166,7 @@ CommandCost CmdBuildObject(TileIndex tile, DoCommandFlag flags, uint32 p1, uint3
 		bool allow_water = (spec->flags & (OBJECT_FLAG_BUILT_ON_WATER | OBJECT_FLAG_NOT_ON_LAND)) != 0;
 		bool allow_ground = (spec->flags & OBJECT_FLAG_NOT_ON_LAND) == 0;
 		TILE_AREA_LOOP(t, ta) {
-			if (HasTileWaterClass(t) && IsTileOnWater(t)) {
+			if (HasTileWaterClass(t) && IsTileOnWater(t) && !IsCoastTile(t)) {
 				if (!allow_water) return_cmd_error(STR_ERROR_CAN_T_BUILD_ON_WATER);
 				if (!IsWaterTile(t)) {
 					/* Normal water tiles don't have to be cleared. For all other tile types clear
diff --git a/src/water_map.h b/src/water_map.h
index 07819e182c..41a903dd34 100644
--- a/src/water_map.h
+++ b/src/water_map.h
@@ -170,6 +170,16 @@ static inline bool IsCoast(TileIndex t)
 	return GetWaterTileType(t) == WATER_TILE_COAST;
 }
 
+/**
+ * Is it a coast tile
+ * @param t Tile to query.
+ * @return \c true if it is a coast.
+ */
+static inline bool IsCoastTile(TileIndex t)
+{
+	return IsTileType(t, MP_WATER) && IsCoast(t);
+}
+
 /**
  * Get the other tile of the ship depot.
  * @param t Tile to query, containing one section of a ship depot.