diff --git a/src/station_cmd.cpp b/src/station_cmd.cpp
index 6e3e1b4d19..528352256e 100644
--- a/src/station_cmd.cpp
+++ b/src/station_cmd.cpp
@@ -1806,7 +1806,15 @@ static int32 RemoveBuoy(Station *st, uint32 flags)
 		st->facilities &= ~FACIL_DOCK;
 		st->had_vehicle_of_type &= ~HVOT_BUOY;
 
-		MakeWater(tile);
+		/* We have to set the water tile's state to the same state as before the
+		 * buoy was placed. Otherwise one could plant a buoy on a canal edge,
+		 * remove it and flood the land (if the canal edge is at level 0) */
+		Owner o = GetTileOwner(tile);
+		if (o == OWNER_WATER) {
+			MakeWater(tile);
+		} else {
+			MakeCanal(tile, o);
+		}
 		MarkTileDirtyByTile(tile);
 
 		UpdateStationVirtCoordDirty(st);
diff --git a/src/station_map.h b/src/station_map.h
index fed2107665..1128a39f99 100644
--- a/src/station_map.h
+++ b/src/station_map.h
@@ -287,7 +287,10 @@ static inline void MakeAirport(TileIndex t, Owner o, StationID sid, byte section
 
 static inline void MakeBuoy(TileIndex t, StationID sid)
 {
-	MakeStation(t, OWNER_NONE, sid, GFX_BUOY_BASE);
+	/* Make the owner of the buoy tile the same as the current owner of the
+	 * water tile. In this way, we can reset the owner of the water to its
+	 * original state when the buoy gets removed. */
+	MakeStation(t, GetTileOwner(t), sid, GFX_BUOY_BASE);
 }
 
 static inline void MakeDock(TileIndex t, Owner o, StationID sid, DiagDirection d)