As the lily grows, lower the pot to the proper depth. For all lilies be sure that the root system is below the freeze line for the winter months. Yes it can. Do not place the water lily so that its floating leaves are in the path of turbulent water, such as a waterfall. Keep the lily away from the pump outlet too.
Lilies do their best in still water.
Full sun is the best, but five or more hours of sunlight per day will keep most lilies blooming. There are varieties that will give some blooms in partial shade. Regular fertilization will keep your water lily happy. There is fertilizer especially designed for aquatic plants. Fertilize from April through August.