It's at the east end of the lagoon south of Plaza Resort. I don't know anything about it as they weren't even building it last time I was on Bonaire. Toucan Dive at the Plaza is likely your closest diveop from there. Their boats leave from the same lagoon to the west of Waterlands. Across from the small island with the red roofs on it. So you could maybe walk there now - IDK. There's also a diveop at Port Bonaire.
It's also 4/10ths of a mile (google earth) north of the Airport so the
occasional jet noise might be a factor. There's a condo resort on the south side of the lagoon nearer to the ocean called Port Bonaire - I've read of people hearing flights go just overhead. But they're closer to the departure end of the runway. We stayed at BelMar in Belnem - a short distance south of there and it was very quiet.
Maybe they've done something about it, but that
was a pretty still lagoon. I'd wonder about mosquitoes since it's at the quiet end. Donkey Beach is at the end of the runway and Bachelors is a little farther south of there. So that's a little misleading imo - depends on your definition of "close by".
I've attached a Google Earth shot of the area. If you rotate the Waterlands Village Map 90' counterclockwise you can see that it's the same peninsula that I've marked with an arrow. It obviously wasn't built when the sat photo was taken. Here's a construction shot that gives a sense of the area.
http://www.panoramio.com/photo/19224450
I also marked some nearby "landmarks" The main part of Kralendijk is about 1/2 mile from the South Kralendijk area. The closest restaurant would probably be the Plaza's. But everything in town would be about 5mins. drive from there.
It's not a bad location but you could do better. Especially if you want to be oceanfront.