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We put ours in a separate house than the chickens. Desperate at the time, we used a 16*16 dog pen, and enclosed the top with 1/2 roof and 1/2 fencing, angled so we could walk in it. Inside the pen, we dug out a hole for a medium sized kiddy pool. We cut a hole in the bottom of the pool, added a drain, and have drain pipe that runs out to the downhill side. They have two nests boxes, which they use. The dog pen was supposed to be temporary, but it worked out so well, we kept it.
Currently - they don't use the thing, except to come eat. We have a small pond, and they LOVE the water, and as long as they are in the pond, I don't worry about them too much. It's when they are out of the water, I watch them to make sure nothing gets them. I feed them only in their pen, so I can still lock them down when needed (if I need to take the somewhere soon, look at their feet, predator in the area, etc).