First of, a large boat is called a vessel.
Second, it is cooling water or ballast water you see.
For most parts is is properly cooling water, run by an electric sea water cooling pump through a cooler/radiator from where the internal cooling system is close looped with fresh water. You want for various reasons to be able to see that the cooling water is flowing, this being an outboard motor, a yacht or large commercial vessel.
If it is a tanker it might also be ballast water for easy checking of flow and cleanliness (you want to quickly observe any signs of contamination)
On the vessels I sail on the outlets are underwater, we observe the flow by pressure instead
Source: navigational officer in major container carrier company
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