Advantages
There are several advantages relative to conventional NTR designs. As the peak neutron flux and fission reaction rates would occur outside of the vehicle, these activities could be much more vigorous than they could be if it was necessary to house them in a vessel (which would have temperature limits due to materials constraints). Additionally, a contained reactor can only allow a small percentage of its fuel to undergo fission at any given time, otherwise it would overheat and meltdown (or explode in a runaway fission chain reaction). The fission reaction in an NSWR is dynamic and because the reaction products are exhausted into space it doesn't have a limit on the proportion of fission fuel that reacts. In many ways this makes NSWRs like a hybrid between fission reactors and fission bombs.
Due to their ability to harness the power of what is essentially a continuous nuclear fission explosion, NSWRs would have both very high thrust and very high exhaust velocity, a rare combination of traits in the rocket world, meaning that the rocket would be able to accelerate quickly as well as be extremely efficient in terms of propellant usage. One design would generate 13 meganewtons of thrust at 66 km/s exhaust velocity (compared to ~4.5 km/s exhaust velocity for the best chemical rockets of today). Another design would achieve much higher exhaust velocities (4,700 km/s) and use 2,700 tonnes of highly enriched Uranium salts in water to propel a 300 tonne spacecraft up to 3.6% of the speed of light.
NSWRs share many of the features of Orion propulsion systems, except that NSWRs would generate continuous rather than pulsed thrust and may be workable on much smaller scales than the smallest feasible Orion designs (which are generally large, due to the requirements of the shock-absorber system and the minimum size of efficient nuclear explosives) " .
Read more about this topic: Nuclear Salt-water Rocket
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