Until about 2010, the resort with the most overwater bungalows in the world was the Four Seasons Bora Bora with 100 overwater rooms. Then the AVANI Sepang Gold Coast Resort opened just south of the Kuala Lumpur Airport and it looked unbeatable with its mind-blowing 392 Water Villas (some of which share a structure). Move over, AVANI Sepang, because the Lexis Hibiscus Port Dickson Resort is open and it has an amazing 522 water villas, each complete with a private plunge pool.
I had an opportunity to tour the Lexis Hibiscus Resort a few months ago as they were still putting the finishing touches on the last water villas that had yet to open. It's truly an amazing place in many ways, including the surprisingly reasonable room rates at around US$200 per night for the time being.