I'd go with watering when your neighbour isn't around to reduce the friction you're feeling with her.

Is it possible that you're over watering? I know that conditions are much different down there than they are up here however, I never water to the point where there is standing water anywhere. I don't have a sprinkler system or even a soaker hose (though I'm seriously considering investing this summer!) so I just hand water with a hose and nozel but I stop watering when the ground is wet and not absorbing any more water. So, perhaps watering for shorter periods, more than once a day would give the soil and plants time to absorb what's there and not leave you with puddles.