This is exactly the reason I checked the forum today. At the start of the year, I figured I'd just give it some time. After Feb, I started thinking my RSS feed for the news was broken. Maybe I missed a memo somewhere? Mention that it was discontinued?
Water barrels fill even when not connected to anything, so you would not start with them empty anyway.
I would suggest waiting until water shuts off normally, then we can check if there is an issue with plumbing the sinks to the barrels. You can send the save once it happens if you run into issues with it.
The problem here is that the water in the world has not shut off yet, so yes, all sinks will work no matter where they're placed. And that is not my issue. My issue is specifically plumbing to placed rain barrels on the ground floor, after I've moved around plumbing fixtures to suit the rain barrel positioning.
All of this was preparing for when the water in the world eventually does shut off, so that I don't start off with empty rain barrels at the point of water shutting off.
So that's when I noticed that some of the sinks (at location 1 & 3), after being moved, don't show the plumb option to the rain barrels (it should be an additional option when world's water is still on).
And if it's not recommended to turn off the water (via Sandbox Settings etc.) just to test, then I can't think of how else to convey what's happening in-game.