RedactedNarrative: Operator 1 launched Vessel 1 into the water. Vessel 1 was in neutral when Operator 1 noticed smoke coming from the engine compartment. Operator 1 discharged a fire extinguisher into into the engine compartment. Operator 1 did not see actual flames but did notice burn marks on the inside of the engine cover. Operator 1 then requested a tow back to the boat ramp. It was determined that the proximate cause of smoke originated from the water intake not functioning properly which caused the engine to overheat and fail.  The heat inside the engine compartment was not hot enough to start a fire but caused the charring and smoking. This caused $2000 worth of damage.