This porcupuffer will follow Mario even underwater. It doesn't move along layer 1 as the original porcupuffer does, and it's also customisable regarding its speed and acceleration - you can also decide if you want it to despawn offscreen or not. Check the .asm file regarding those options.
(Small change by Rykon-V73): Converted the sprite to .json, added SP4 version and converted that to .json and you can edit tilemap, speeds and palettes.
You've replaced the original Chasing Porcupuffer with a version that doesn't work with the "Water" spriteset and instead works with... the "Castle" spriteset? This is far less useful than having it just work with it's original spriteset like the original version does, since a Porcupuffer will pretty much never be used along with Castle sprites or in a Castle setting. Please don't replace what graphics the original version uses when submitting updates like these.
Also, the sprite description is a bit weird - I'm not sure what you mean by "I think you need a different water setting here."
Finally, you didn't update the submission details as "Includes GFX".