Yea bury it 10 or 12 inches away and poke the holes only on the plant side of the jug. The plant will seek out water supply if the soil starts to get dry. The plant will send out new root fibers toward water and will actually grown a root ball and secondary tap root off to the side . Even when starting from scratch bury the jugs around the area say 10 inches or so from where you start the seedling. This causes the roots to spread and cover more area which will also help in getting the last moisture in the soil as it needs it...