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I'd say experiment, just build stuff, eventually you'll be able to move things around. Also, eventually building pathways trivialises travel between areas, so everything feels like it's close.
If you plan on doing more than one reservoir, it is definely better to build only one where you live and the other(s) nearby. Also as far as I know cisterns don't genereate insects, but cannot be built in all places.
Fertile land with easy access to wood, dirt, salt water (Mangrove) and a cave to store manure without the smell penalty
Also the bugs population is not too bad either, even if you have 2 water reservoir and the only threat is monitor lizard when hunting
Oh and no storm/heavy rain penalty too