> At full zoom, the marker's position is about where expected.
> At lower zoom level, the marker is over the water.

Marker is doing exactly what you told it to; your iconAnchor has been
set at 0,0
That means the top-left of the icon image is pinned to the latlong on
the map.
Looking at your icon image I expect you you want the bottom middle to
be the anchor point.
http://econym.org.uk/gmap/custom.htm

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