At the extra special Nintendo conference today (no not that other rubbish one) it was revealed that members from the Wave Race 64 team are working on the Jet Ski game in the new version of Wii Sports, Wii Sports Resort. According to the team leader the group is planning on making the game better then the N64 game (which to fans is the definitive version). So while a full blown Wave Race game may be off the cards for now, its spirit lives on.
Source: Cubed3