Visualize the fundamental plane-wave solutions to Airy's linear wave equation. The mathematical details are very nicely summarized in Wikipedia.
The movement of water that takes place under the wave's surface explains why water depth is such an important factor in determining wave velocity.
The elliptical motion of individual water particles may be familiar to those who have snorkeled in shallow water.
In short, the velocity
where
Special cases of this formula are the deep and shallow limits:
More mathematically-amenable quantities are the angular wavenumber
In particular, given any initial conditions for the surface
For any
The primary assumption is that the amplitude
The dispersion relation arises from exactly solving the PDE of the fluid motion under the surface. That PDE is Bernoulli's equation and assumes that water is incompressible and irrotational. While water is certainly not irrotational, it is still a convenient assumption since rotational effects don't play a very significant role in small waves.