Class Access Problem

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();

it works as expected. But why should I have to do that?

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

Thnx in advance!