Preheat oven to 350 degrees F (175 degrees C). Line a baking sheet with parchment paper.
Whisk butter and sugar in a bowl until creamy. Add flour, water, and oil; mix until well combined. Fold in white chocolate chips and coconut flakes.
Drop spoonfuls of dough 2 inches apart onto the prepared baking sheet.
Bake in the the preheated oven until edges are golden, about 10 minutes. Cool on the baking sheet for 1 minute before removing to a wire rack to cool completely.