This week's celebrity psychic is Laurie McQuary ("Voted 'Portland's Best' by Willamette Week").
The episode pretty much followed the classic Twilight Zone format: a weird, spooky story of uncanny insights by the psychic, all confirmed by the investigating officer. The sting in the tail being the mention in the final moments that the officer married the psychic over 18 years ago, so that all the evidence he provided (and remember this whole thing is a dramatic reconstruction filmed 20 years after the event) is far from independent and clearly tainted.
Suffice it to say that, as in all previous episodes, the murder would have been solved without the psychic (this is obviously the modus operandi for this show).
And yes, the psychic "knew" that the body would be found "near water".
Let's hope when Catalyst returns they will do a special on psychic powers, covering some of the themes referred to at this page on Psychic Frauds.