What dosage are you using? There should be very minimal water retention from creatine.
Your are most likely:
1. Using way too high of a dosage. The recommended dosage is 5g/day
2. You are using a creatine product that is flavoured/sweetened with artificial flavours/sweeteners that your body is reacting negatively to which is causing the water retention.
I've seen rare claims of 'water under the skin' but only in the super lean. I'm with the others - more likely to be caused by using a sugar and additive laden product.