Thre are several waterparks in the Albufeira region, the only hotel i know thats all inclusive is The Hotel Paradiso in Albufeira if you type this name into the search button you should come up with several leads.

Aquashow water park has a roller coaster that splashes through the water, Slide and Splash is good.

I have a bar, so declare an interest, but if you go AI in Albufeira, you will regret it, so many great bars and restaurants to try, not expensive if you shop around. Also I have been told the drinks options can be rather limited, and in some places you have to pay after midnight. Check thoroughly what is included and make sure you have it in writing!

I would say do not go all inclusive in the Algarve as Algarve Addick says there are far too many good bars and restaurants you would miss if you do

thanks for the tips,when we go to AI hotels we only really use them for the drinks,icecreams and snacks through the day. We always eat out on a night as we feel this is part of the holiday.Going to look into them now and hopefully book tomorrow

managed to get a good deal ai at the paraiso so all sorted for august...portugal here we come