Local Rule drop zone

Question
Hi,
The local rule on our card says If a ball is in, or it is virtually certain that a ball etc ... in a water hazard adjacent to or behind a green the player may proceed under Rule 26, or as an additional option drop a ball under penalty of 1 stroke, in a dope zone nearest to the point of entry.  

Our course has a large water hazard that is marked with yellow stakes up to half way up the green and then red stakes where it is adjacent to the green.  The drop zone is in front of the water hazard which does not go completely across the front of the fairway.  This part of the hazard is marked with yellow stakes.  What players do is pick up there ball (even from behind the drop zone) where their line of entry is over yellow stakes and drop in the drop zone.  I have pointed out that the drop zone should be moved so that players are not confused - however the club seems to think this is a legal drop.  Look forward to your comments.  I have done a diagram which might assist.

Answer
Christine,

I have a couple of points to make if I'm reading your question correctly. You state that the drop zone is in front of the water hazard. If you hit a ball into a water hazard you always have to keep the water hazard between yourself and the hole if you drop near the water hazard. This would be a breach of rule 26.

I did not receive the drawing. To help me understand this situation better, you can e-mail the drawing to [email protected].

Thank you,

Michael