[AS3] Class Access Problem

[Cortana]

I'm very sorry for double posting this but as this problem is with a game I'm making and a LOT more people frequent here than the AS3 forum I suppose it isn't too bad if I post here. Anyways here goes..

I have a Main class in the fla's directory

I have a Waters folder which contains WaterHandler and Water1

The Main class imports Waters.WaterHandler

WaterHandler when asked, needs to make a new Water1.

This is where it messes up. For some reason WaterHandler doesn't create the Water1 that is in the Waters directory - it creates a fake one which means when I try and access Water1's methods it says they arent there.

Weirdly enough, if I put WaterHandler and Water1 in the fla's directory everything works fine. But I want all of my files to be nicely organized.

Also, if I use:

var test = new Waters.Water1();

from WaterHandler it creates the proper Water1. But why should I have to do that if its already in the same package?

What am I doing wrong? Why cant I simply use 'new Water1()' from WaterHandler successfully seeming as they are in the same directory?

And yes I've declared both Water1 and WaterHandler as part of the Waters package. And I've also tried importing Waters/Water1/Waters.Water1 to no avail.

Thnx in advance!