The scene where KITT fires rockets to cause a mountain to collapse into the path of water from a breached dam, the footage used is the same footage seen in Superman (1978) where an earthquake causes a dam to break and Superman collapses a mountain in to the water's path. The show's producers found it was cheaper to purchase the footage from the Superman film rather than trying to re-create their own scene.
The Lincoln County War that Josh mentions in reference to their own situation with Bremen, took place from 1878 to 1879 and involved cattlemen led by Billy The Kid against business owners wanting to seize their land in Lincoln County, New Mexico.
K.I.T.T. is outfitted with a grappling hook.
The title from this episode is from the line, "water, water, everywhere, and not a drop to drink," from "The Rime of the Ancient Mariner" written from 1797-99 by Samuel Taylor Coleridge.
The scene where a dog named "Harry" tries to urinate on KITT (14:53) is played by none other than the black and white sheepdog who played "Bandit" on Little House on the Prairie, Jeffery the Dog, which was still airing at the time Knight Rider aired. The sound effects KITT plays to scare Jeffery away before he can do his deed is the familiar MGM lion growl.