Aerial platforms designed for water jet placement are gaining interest in the areas of fire-fighting, washing, and irrigation. A novel, lightweight, and simplistic design is proposed that reduces the number of actuators and limits ineffective water discharge. External camera feedback was used for position control as a first step towards autonomous flight. An initial prototype of an unmanned hydro-propelled aerial vehicle (UHAV) connected to a water hose was designed and fabricated. Flight tests were conducted to show that attitude control with uniaxial thrust-vectoring of two nozzles was impossible due to undamped vibrations and coupling effects. By redesigning the PID controller, pitch rate damping was accomplished. Furthermore, a design trade-off led to the introduction of a canting keel to reduce bank-yaw coupling effects due to asymmetric nozzle deflections. Flight tests proved that the iterated design with a hose length of 3m was capable of disturbance rejection and setpoint tracking. An external camera was used to show that the Lucas-Kanade optical flow algorithm and the implementation of the YOLOv5 segmentation model can be used for positional water jet placement. By increasing the pitch rate damping, improving the water jet detection algorithm and implementing a cost function for water discharge at the area of interest, autonomous missions can be flown in the future.