Lateral Water Hazard

[Cheifi0]

We have a stream running along the left hand edge of a fairway. To the left of the stream are hedges and trees and then the boundary to the course. My playing partner found his ball in the lateral hazard to the left of the stream, in the bush/tree area. He played his shot chunked it and put it into the stream. There is no way that he can play the ball from the stream.
What are your options now? I wasn't sure so in the end my playing partner re dropped where he took his last shot from. Is that the only option?

 

[Hosel Fade]

We have a stream running along the left hand edge of a fairway. To the left of the stream are hedges and trees and then the boundary to the course. My playing partner found his ball in the lateral hazard to the left of the stream, in the bush/tree area. He played his shot chunked it and put it into the stream. There is no way that he can play the ball from the stream.
What are your options now? I wasn't sure so in the end my playing partner re dropped where he took his last shot from. Is that the only option?

No it isn't the only option. You can go back to the point from where you last played a shot from outside of a hazard and you also still have all the standard options involving the point the ball last crossed the margin. All of them still carry a penalty stroke with them.

Rule 26-2a

http://www.usga.org/rules/rules-and-decisions.html#!rule-26