It has been brought to my attention that players are uncertain of what their interactions with other alignments should be; that is to say, what would merit a punishment or not in the eyes of staff. I want to make unequivocally clear that our goal is not to punish players or stifle their roleplay or fun, and to that end, I'd like to clarify what our position is.
When it comes to good-aligned characters, you are not required to murder every evil character you see. Nor are you required to avoid roleplaying with such characters, or avoid grouping with them. It's reasonable to assume that adventurers can't always be choosy about who they are with (unless their role specifically dictates it), and sometimes you end up with shady characters who you may not entirely trust. That's fine, and actually a really good point from which to develop your character and, if it's within your role, try to encourage the evil character to be more neutral (or even good). That said, one should be mindful (especially if you are say, a spirit scholar or templar) that openly helping shuddeni or void characters-- or really, any reasonably well known villain to the broader player base at large, such as a titled Covenite-- gain powerful items or slay good-aligned characters should be kept to whatever is the reasonable minimum. The only hard and fast rule of being a good-aligned character here is to not kill other goodies unless it is somehow absolutely necessary, and even then, to the lowest degree possible.
Adjacent to that, water magi should not fear losing their spells in the way they once did. Instead of losing their powers outright, red aura now weakens the powers they have, reducing their efficacy. It should never be possible for them to actually lose their powers this way, and should they wish to reverse the process, all they need to do is accrue gold aura to empower them again. Healing an evil character is fine. Grouping with an evil character is fine. What is not fine is acting overtly evil yourself. If your water scholar is repeatedly advocating unholy rites, drinking the blood of babies, or other similarly mustache-twirly behaviors, that will merit some looking into on our part. But note that this is a pattern of behavior, not a single action, and in large part is avoidable if that character maintains at least a fig-leaf neutrality.
On the subject of evil characters-- why would you not want to group with a good-aligned character, assuming they don't want to kill you? This is a wonderful opportunity for you to try to sway them to your point of view, or maybe even start a story arc together which doesn't necessarily require the intervention of staff. This has always been allowed, and is in fact encouraged. Helping a good-aligned character rank is fine, although you won't receive as much experience as they do per kill. If you're worried about losing your evil alignment for doing so, that would only happen if you showed a repeated and intentional series of decisions which suggested you didn't actually want to be evil, or simply never in any way conveyed your true alignment in-game. I just want to say though, it's a cold day when we make someone neutral from evil, as many of you likely well know.
The point of all of this is: play with one another. Don't be afraid of punishment from us, because we don't aim to stop the interaction of characters with one another. I know there was a time when that was the case-- but the people who made those decisions are no longer with us, and it's not the direction we have intended to go since the re-opening of the game in 2016. If you're uncertain if you're doing something wrong, feel free to ask our moderators in Discord. I feel fairly safe to say that for routine play, you're going to be fine, and we're not going to sanction you for exploring your character with others.
TL;DR: interact with whoever you want, group with whoever you want, don't kill goodies as a goodie, don't be an obvious villain as your goodie/water mage, you won't get punished for stupid things, ask moderators if you're not sure.