When James Cameron mentioned that the “Avatar” sequel would mostly take place in the ocean of Pandora, many wondered if essentially the entire film would happen underwater.
“Avatar” producer Jon Landau clarified the comment with Empire, saying “water will be a part of the movie, but it won’t be all of the movie. There’s been a lot of rumors that it’s an underwater movie – it’s not. Just like the Floating Mountains, and the Na’vi’s interaction with the mountains, were a part of Avatar, it’ll be the same type of thing.”
Landau also says that despite a third film being set and locked in, the second film will be self-contained – “The next [film] will kick off where the next last one ended, but, just like ‘Avatar’ resolved itself and doesn’t feel like a set-up to another movie, you don’t want ‘Avatar 2’ to feel like a set up for 3.”