Right - I eventually found the answer to my own query buried deep in a miscallaneous toolset tutorial. I thought I'd post the answer here in case anyone came looking for it.
Basically what you do is draw a patch of water, then drag the stream tile through it. I think the water tile must be at least 2 squares wide and the stream brough in on a 'flat' edge. The stream areas can be walked through by players, but the water tiles are impassible.
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