Iron golems are supposed to spawn in water, as they do in iron farm designs which work in single-player worlds. However, they don't spawn naturally in water on Realms at the moment. They also can't be built in water, regardless of the block underneath. Building an iron golem anywhere else near the water works fine, as does removing the water and then building the iron golem. This bug breaks most iron farms and is inconvenient for resource generation.
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We're tracking this issue in MC-60792, so this ticket is being resolved and linked as a duplicate.
That ticket has already been resolved as working as intended, which means this is not considered a bug and won't be fixed. Please do not leave a comment on the linked ticket.
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Duplicate of MC-60792, which was later resolved as, "Works As Intended".