I am a new GIS student currently working on a coastal flood model in arc map, where I intend to create flood polygons at various heights above 0m contour (MSL)to represent the extent of area flooded on the coast. However, the DEM that was created using elevation spot height and contour data shows areas in the ocean >0m. Is this a correct representation? I would think the areas covered in ocean should be 0m or less. Therefore, when I create the flood polygons portions of ocean are shown to be flooded as well. Is there anyway to rectify this?
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3Are you certain there are no islands in your area of interest? – Aaron♦ Oct 4 '16 at 3:46
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3What is the source of the DEM data? Does it possibly show trees (mangroves)? Small islands? Oil Rigs? Is the data actually against MSL? Or is it referenced to the ellipsoid? – BradHards Oct 4 '16 at 3:46
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Thank you for the replies. There are no islands or any other objects in the AOI as far as I can tell based on the satellite image and I didn't see anything on the site visit. It is referenced to the ellipsoid. – Nikisha Headley Oct 10 '16 at 3:05
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The ocean is a dynamic environment, depending on conditions (thermal expansion, swell heights, bathymetric profile, location, etc.) this can be normal. Additionally, MSL is really in the area of the intertidal zone (somewhere between MHHW and MLLW), so depending on the DEM data, tidal conditions during the survey could be showing. Coastal flood modelling commonly uses MHW or MHHW reference contours. Also, a vertical projection in NAVD88 is not the same as local MSL (see fig). Depending on where you are in the world, you should find your local tidal datum and use that value to draw a reference contour. 
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Nice visual example. Link to the (web-?)application or source code that produced the figure? – Nikos Alexandris Nov 22 '17 at 12:02
