Don't use waterproof, because if it flakes, it will hurt your eyes. Today, I am using a sephora brand pencil, but I do it a lot w/ my smashbox gel liners.
I have an Estee Lauder double-ended pencil that is awesome for water lining. It's the Intense Kajal Eye Crayon. The white is awesome for days when I need to look more alert. I have trouble with some pencils not working - they either don't go on or don't stay.
Also, UD's 24/7 glide-on shadow pencils are good for waterlining because they are thick and you can control them better. I think a set of 5 are on sale on their site. I used rehab as a liner and I really like it.
Sometimes I think white can look kind of harsh on me, so I use a pink champagne color on my bottom waterline. I have a MAC LE one, but MUFE at Sephora also has one that I bought. Really like it a lot for making me look more awake!