Tao Teh Ching Chapter 8

上善若水。水善利万物而不争，处众人之所恶，故几于道。
居善地，心善渊，与善仁，言善信，正善治，事善能，动善时。
夫唯不争，故无尤。


Translation
The highest goodness is like water. Water benefits all living things and yet it does not contend (for recognition), it dwells in the worst place where all dislike, therefore it is almost like Tao.
The nature of the Tao when dwelling it is proficient in choosing a place, its heart is as big and accommodating as the valley, in dealing with people it is kind, when using speech it is convincing, when ruling it is just, when working it has the ability, when initiating a move it chooses the right moment.
It is only because the Tao never contends, it never makes a mistake.

Detailed Comment
In this Chapter, the property of the Tao is further described and compared with water. Water is the second most important thing is our lives. We can live without food for weeks, but we will suffer dehydration and dye in days if our water is cut. Everything that grows need water. Yet, when possible, water tends to go to the lowest ground. This is a Chinese saying, The Man seeks a higher ground while the water flows to the lowlands. This says the difference nature of Man and Water. However Lao Tzu is saying here that the Man possesses the Tao is like water, therefore differentiate himself from the rest of the crowd.
In the second paragraph, Lao Tzu describes the way of the Tao with dealing with various aspects of life. Let's discuss these one by one.
居善地, Choosing the right please to live. This is obviously important in cultivating the Tao and it is stated here first. Now where is the right place? The answer is not given here, but different people will choose according to there need in the present time. However I think the desired place should be a humbled place. It should be comfortable, yet not having anything that is overly extravagant. This reminds me of the Buddhist King of Bhutan, who lives in a log cabin. He has the resources to build a palace, but he choose to live modestly.
心善渊,, The heart is as deep as the valley. We sometimes describes a person as having a big hart. The heart is of great importance in the Tao. This is as compared to the brain, which so far, Lao Tzu had ignored. Later on we will see how Lao Tzu renounced the brain. The valley is accommodating. If will build a dam the valley become a reservoir and it benefits all. If our hearts are accommodating, we become useful and close to the Tao.
与善仁, Deal with people with kindness. I am troubled here. In Chapter 2, Lao Tzu said 圣人不仁，以百姓为刍狗., The sage is not kind, he treats all people indifferently. Seemingly there is a conflict here. I will try to reconcile here as best as I can. The context here is the way of the Tao. , to be kind. I understand this kindness as not harming. Here is a common situation. You see a person in need of help. You can act out of you own good heart and offer help without being asked. If it is a small matter, such as vacating your seat to an elderly person, that doesn't matter. What about you offer career advise, or how to treat a personal problems? Time and again, we see the exact opposite is true, i.e. you are not only not helping, you are doing the damage here. Now what a sage will do? This is my understanding. Being indifferent, it doesn't mean he is not kind. He knows what is best to the person in question and gently leading him to a position where it is best for him, without pushing. If the desired outcome is not achieved, the sage is not frustrated, this is due to his 不仁, or indifference and he knows this is the way it is.
言善信, Talk with convincing power, with credibility. It is through what a person talk and don't talk that we put our judgement of that person. Therefore be very careful with what we speak.
正善治, to rule with justice.
事善能, when doing anything, cultivate your ability. Here is the practical part of the Tao. When Lao Tzu says No Action, he is also saying be strong in your ability. If we need to do nothing, why, then, ability is required? The No Action here is to do nothing with a purpose or desire. As it happens, the way has to flow and things is achieved by nature. The sage, with great ability, completes the Tao with grace.
动善时, To move with the best timing. This is the same as the previous one.
夫唯不争，故无尤。Having possessed all of the qualities above, we see that the sage has manoeuvred with perfection and not in a second he contends or strives to achieve. It is because of this way of his action, he never makes a mistake. What does it mean not to make mistakes? When you make a mistake, you say to yourself, I am so stupid. Overtime, when you progress in the Tao, you find yourself make less and less mistakes. This is the cultivation of Wisdom.