Have you decide how you will connect your LEDs? If they are close to water, i strongly suggest that you use transformers (220 to 48V for example), for 2 reasons: first to have lower voltage to play safe, and second (and most important) to isolate between earth and your circuit.
Now, regarding the linear supplies, you are right. in mathematical words, you need to dissipate the amount of power you don't want to be delivered. It goes something like this:
If you have 48 volts supply but you want to regulate it to 40 volts, and your circuit draws 1 ampere, no matter what sort of linear supply you will use, there will be 8 watts of power that must be dissipated as heat. That is because your power transistor must "hold" 8 volts (48-40=8) at 1 ampere. Generally, anything above 1 watt will need a TO220 transistor with heatsink. Above 4 watts you may consider using a small fan or a large heatsink, otherwise the transistor will fry in seconds.
On the other hand, SMPS deliver only as much power needed, and that is why they achieve that high efficiencies. I've just made an SMPS LED driver with the A6210 and a PIC. The controller gets 2x18 volts AC and drives up to 8 3W LEDs in series, a total of 24 Watts at 700 mA. The chip can drive up to 3 amperes (!!!) so i can scale it up (almost easily) to about 65 Watts, but i certainly need to change the linear supply with something else (not sure what). The AC power comes from a transformer (for isolation) which is driven to a linear regulator (only to sink the over-voltage from the transformer). I can fully dim the LEDs with PWM pulses with 1024 duty-cycle steps. That is only possible with SMPS, otherwise, i would need to sink 24 watts (3watts x 8 leds) to maximum dim the LEDs
Now, why i wrote all these?

Oh yeah, to point out that you may consider using both linear and SMPS