As the title suggests, Wood & Water Rage is two games in one. The "Wood" in the title refers to the Street Skate Session. In this mode of play you (as either Joe Cool or Tiki Man) ride a skate board down a street, dodging and jumping over hazards. If you fall into the ocean or into a crack in the street, or if you crash into a rolling oil drum, a baseball or one of the other obstacles, you lose Life Symbols. Other hazards include an oil slick, which spins you out of control for a couple of seconds, and torn-up sections of the road that slow you down. You can score points by jumping on a turtle, a ball, or a toy car, by jumping over certain barriers, jumping from ramps, and jumping onto and along the upper guard rail. If you run out of Life Symbols or if the clock winds down to zero, the game is over.

The "Water" refers to the Big Wave Encounter. In this mode of play you surf (as either Thrilla Gorilla or Kool Kat) a hazardous pipeline. The longer you stay up, the more turns you make; the more bananas you collect, the higher your score will be. The game is over when you lose all your Life Symbols.

There is a third option entitled Wood & Water Rage, but it is simply a combination of the first two modes of play.