diff --git a/homeassistant/components/device_automation/helpers.py b/homeassistant/components/device_automation/helpers.py
index e123202026f..858dc466587 100644
--- a/homeassistant/components/device_automation/helpers.py
+++ b/homeassistant/components/device_automation/helpers.py
@@ -38,6 +38,7 @@ ENTITY_PLATFORMS = {
     Platform.SELECT.value,
     Platform.SWITCH.value,
     Platform.VACUUM.value,
+    Platform.WATER_HEATER.value,
 }
 
 
diff --git a/homeassistant/components/water_heater/device_action.py b/homeassistant/components/water_heater/device_action.py
index 8ae75527abc..5b0fe46934c 100644
--- a/homeassistant/components/water_heater/device_action.py
+++ b/homeassistant/components/water_heater/device_action.py
@@ -3,6 +3,7 @@ from __future__ import annotations
 
 import voluptuous as vol
 
+from homeassistant.components.device_automation import async_validate_entity_schema
 from homeassistant.const import (
     ATTR_ENTITY_ID,
     CONF_DEVICE_ID,
@@ -21,14 +22,21 @@ from . import DOMAIN
 
 ACTION_TYPES = {"turn_on", "turn_off"}
 
-ACTION_SCHEMA = cv.DEVICE_ACTION_BASE_SCHEMA.extend(
+_ACTION_SCHEMA = cv.DEVICE_ACTION_BASE_SCHEMA.extend(
     {
         vol.Required(CONF_TYPE): vol.In(ACTION_TYPES),
-        vol.Required(CONF_ENTITY_ID): cv.entity_domain(DOMAIN),
+        vol.Required(CONF_ENTITY_ID): cv.entity_id_or_uuid,
     }
 )
 
 
+async def async_validate_action_config(
+    hass: HomeAssistant, config: ConfigType
+) -> ConfigType:
+    """Validate config."""
+    return async_validate_entity_schema(hass, config, _ACTION_SCHEMA)
+
+
 async def async_get_actions(
     hass: HomeAssistant, device_id: str
 ) -> list[dict[str, str]]:
@@ -43,7 +51,7 @@ async def async_get_actions(
         base_action = {
             CONF_DEVICE_ID: device_id,
             CONF_DOMAIN: DOMAIN,
-            CONF_ENTITY_ID: entry.entity_id,
+            CONF_ENTITY_ID: entry.id,
         }
 
         actions.append({**base_action, CONF_TYPE: "turn_on"})
diff --git a/tests/components/water_heater/test_device_action.py b/tests/components/water_heater/test_device_action.py
index 35b78a3d926..a8ca41905d6 100644
--- a/tests/components/water_heater/test_device_action.py
+++ b/tests/components/water_heater/test_device_action.py
@@ -35,16 +35,15 @@ async def test_get_actions(
         config_entry_id=config_entry.entry_id,
         connections={(dr.CONNECTION_NETWORK_MAC, "12:34:56:AB:CD:EF")},
     )
-    entity_registry.async_get_or_create(
+    entity_entry = entity_registry.async_get_or_create(
         DOMAIN, "test", "5678", device_id=device_entry.id
     )
-    expected_actions = []
-    expected_actions += [
+    expected_actions = [
         {
             "domain": DOMAIN,
             "type": action,
             "device_id": device_entry.id,
-            "entity_id": f"{DOMAIN}.test_5678",
+            "entity_id": entity_entry.id,
             "metadata": {"secondary": False},
         }
         for action in ["turn_on", "turn_off"]
@@ -78,7 +77,7 @@ async def test_get_actions_hidden_auxiliary(
         config_entry_id=config_entry.entry_id,
         connections={(dr.CONNECTION_NETWORK_MAC, "12:34:56:AB:CD:EF")},
     )
-    entity_registry.async_get_or_create(
+    entity_entry = entity_registry.async_get_or_create(
         DOMAIN,
         "test",
         "5678",
@@ -92,7 +91,7 @@ async def test_get_actions_hidden_auxiliary(
             "domain": DOMAIN,
             "type": action,
             "device_id": device_entry.id,
-            "entity_id": f"{DOMAIN}.test_5678",
+            "entity_id": entity_entry.id,
             "metadata": {"secondary": True},
         }
         for action in ["turn_on", "turn_off"]
@@ -103,8 +102,10 @@ async def test_get_actions_hidden_auxiliary(
     assert actions == unordered(expected_actions)
 
 
-async def test_action(hass: HomeAssistant) -> None:
+async def test_action(hass: HomeAssistant, entity_registry: er.EntityRegistry) -> None:
     """Test for turn_on and turn_off actions."""
+    entry = entity_registry.async_get_or_create(DOMAIN, "test", "5678")
+
     assert await async_setup_component(
         hass,
         automation.DOMAIN,
@@ -118,7 +119,7 @@ async def test_action(hass: HomeAssistant) -> None:
                     "action": {
                         "domain": DOMAIN,
                         "device_id": "abcdefgh",
-                        "entity_id": "water_heater.entity",
+                        "entity_id": entry.id,
                         "type": "turn_off",
                     },
                 },
@@ -130,7 +131,7 @@ async def test_action(hass: HomeAssistant) -> None:
                     "action": {
                         "domain": DOMAIN,
                         "device_id": "abcdefgh",
-                        "entity_id": "water_heater.entity",
+                        "entity_id": entry.id,
                         "type": "turn_on",
                     },
                 },
@@ -150,3 +151,42 @@ async def test_action(hass: HomeAssistant) -> None:
     await hass.async_block_till_done()
     assert len(turn_off_calls) == 1
     assert len(turn_on_calls) == 1
+
+    assert turn_off_calls[-1].data == {"entity_id": entry.entity_id}
+    assert turn_on_calls[-1].data == {"entity_id": entry.entity_id}
+
+
+async def test_action_legacy(
+    hass: HomeAssistant, entity_registry: er.EntityRegistry
+) -> None:
+    """Test for turn_on and turn_off actions."""
+    entry = entity_registry.async_get_or_create(DOMAIN, "test", "5678")
+
+    assert await async_setup_component(
+        hass,
+        automation.DOMAIN,
+        {
+            automation.DOMAIN: [
+                {
+                    "trigger": {
+                        "platform": "event",
+                        "event_type": "test_event_turn_off",
+                    },
+                    "action": {
+                        "domain": DOMAIN,
+                        "device_id": "abcdefgh",
+                        "entity_id": entry.entity_id,
+                        "type": "turn_off",
+                    },
+                },
+            ]
+        },
+    )
+
+    turn_off_calls = async_mock_service(hass, "water_heater", "turn_off")
+
+    hass.bus.async_fire("test_event_turn_off")
+    await hass.async_block_till_done()
+    assert len(turn_off_calls) == 1
+
+    assert turn_off_calls[-1].data == {"entity_id": entry.entity_id}