My friend and I are talking and walk/swimming slowly up the street, but I can't remember the topic we were discussing, and a young man (20s) swims by, quickly, smoothly and mer-man-like, as though he has always lived in water. He stops once he's passed and turns around and looks at me. He smiles and throws me a bar of soap he said he'd been using to bath himself in the water. I take the soap, but I am not sure what to do with it. Bathing seems like a good idea, but inappropriate in the street. As I stand with the soap, he begins to pleasure me in sexual ways from under the water and I look toward my friend, embarrassed, but she is no longer there. Looking to where she was, the sun blinds my eyes and I give in and go under the water with the man. I cannot see anything under the water, but I feel love, pleasure and peace. I wake up at this point.
kobi_mucGood morning, kobi_muc.
Every water dream I've seen always seems to refer to emotions. With that in mind, your dream comes into focus rather quickly.
The familiar streets are now flooded, but no one else either notices or minds. Which is understandable, considering that the streets are the pathways of your mind. The water, far from being the filthy muck one would actually see in flooded streets, is clear and clean - telling us that this new emotion you're feeling is much better than your previous state.
Walking with the female friend can be an indicator of the object of such feelings, or it can represent an acceptance of one's own "feminine side." Your info page tells me that you're male, but you don't tell me you're freaked out when the merman starts to pleasure you - therefore I'm betting that it's the latter.
The merman is definitely an icon of acceptance of your feelings. While normal humans are out of place in the water, he is perfectly at home with deep emotions, and has no problem with publicly displaying them. I get this from the soap - he's been bathing in the street and feels no shame over it, while you are still uncomfortable with that.
When the merman pulls you under, you feel at peace because you have surrendered to your feelings.
What I get from all this is, you are starting to come to terms with your emotions, and own identity, which seems to be a positive (and new) thing for you.