No, this isn’t a scene from Waterworld 2. (Thank goodness.) This image is an artist’s rendition of how Manhattan would look if it lost the fight against rising sea levels. Vanity Fair chose this picture for its 2006: Year in Photos collection.
The depiction is meant to be shocking, but I see it as Venice II. I imagine little vaporettos ferrying people down Fifth Avenue, circling Central Park, and stopping by the new Piazza San Marco: Times Square.
(Thanks, Mike!)