Crossword Genius

Wet toilet creates conflict (8)

Ross

I believe the answer is:

waterloo

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'conflict' is the definition.
The definition and answer can be both acts as well as being singular nouns.
Perhaps they are linked in a way I don't understand?

'wet toilet' is the wordplay.
'wet' becomes 'water' (watering is a kind of wetting).
'toilet' becomes 'loo' (loo can informally mean a toilet).
'water'+'loo'='WATERLOO'

'creates' acts as a link.

Can you help me to learn more?

(Other definitions for waterloo that I've seen before include "Meet one's - -" , "Final crushing defeat" , "London rail terminus" , "Decisive battle" , "6D 5A [TUBE STATION]" .)

I've seen this clue in The Telegraph.
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