The City of Winona Minnesota was built right on the Mississippi River - literally. Although the city is obviously on dry land, it is completely surrounded by water. You can get a good appreciation for this by visiting the Garvin Heights Overlook above the town. In the foreground you can see a lake that is just outside the main channel of the river. Beyond that is the city itself, and then the main channel of the river. The hills on the opposite side of the valley are in Wisconsin. I would have to say that Winona is in a most beautiful location! I don't know how often it floods, but the scenery is hard to beat.
My family and I visited the area when I was living in Iowa briefly. I took my parents up to the Garvin Heights Lookout and we had this lovely scene right in front of us!