Shallow water wave phenomena find their analogue in optics through a nonlocal nonlinear Schrodinger (NLS) model in $(2+1)$-dimensions. We identify an analogue of surface tension in optics, namely a single parameter depending on the degree of nonlocality, which changes the sign of dispersion, much like surface tension does in the shallow water wave problem. Using multiscale expansions, we reduce the NLS model to a Kadomtsev-Petviashvilli (KP) equation, which is of the KPII (KPI) type, for strong (weak) nonlocality.