Quote Originally Posted by sw204me
but he looks so happy sitting in there...

How small should I go? way too small for him to fit in?
How 'bout this little experiment:

Get a small dish that he can't fit in at all, and keep that filled with fresh water. Then take his current waterbowl...dry it out...and put it back in there. If he continues to lay in that bowl..then maybe he just likes the feel of it...and it won't hurt him to lay in a dry bowl.