In a large bowl, cream together butter and sugar until smooth. Beat in the egg, water and almond extract. Combine the flour, baking powder and salt; stir into the creamed mixture. Stir in coconut. Roll the dough into walnut sized balls. Place the cookies 2 inches apart onto the cookie sheet and flatten with a floured fork.
Bake for 8 to 10 minutes in the preheated oven, or until lightly browned on the bottom. Allow cookies to cool on baking sheet for 5 minutes before removing to a wire rack to cool completely.