What does it mean when a vessel is described as 'making way through the water'?

Making way through the water means moving relative to the surrounding water, which is different from drifting over the ground with the water mass. Rule 35 uses making way versus underway but stopped for sound signals in or near restricted visibility; do not generalise that distinction into a shortcut for every light or collision rule. Revise this in Coastal Skipper Terminology.