Sensing absolute height

Does this need to be done continually while the chassis is moving, or only to set the height (and level?) after it has been parked?

Presumably you have a point somewhere that you will be using as a height reference. How far away from this do you need to get, and what sort of tolerance do you have on the height?

Any practical constraints, for example can you run a hose out to it and use a water level?