The freezing of water is only spontaneous when the temperature is fairly small. Over 273 K, the higher value of TΔS causes the sign of ΔG to be positive, and there is no freezing point.
The entropy decreases as water freezes. This does not infringe the Thermodynamics second law. The second law doesn't suggest entropy will never diminish anywhere.
Entropy will decline elsewhere, provided it increases by at least as much elsewhere.
