Smoking policies are truly up to every owner or rental company. For Sterling Resorts guests,smoking is prohibited inside the units but smoking on the balcony is okay so long as the balcony door remains shut as to keep the smoke outside of the unit. Always check with the owner or rental company that you rented from.
I don't recall if the entire facility is smoke free or not. We rented from the owner of our unit and it was plainly spelled out -No Smoking. I would think there may actually be some units that are smoking allowed. Some balconies are fairly close though, and I wouldn't want my neighbors to be smoking out there IF it was blowing over on me. However, that is something the rental office could clarify for you. Still a wonderful place to stay!
Get an answer from The Watercrest staff and past guests.