You've just got to make sure that the front wheel clears it. You also have to make sure that the bottle stays in it; most cages don't grip adequately against forces in that direction and need to be reinforced with a toe strap or Velcro strip. Also, you'll probably want to protect the bottle from the grit and road-spray that seems to deposit itself on the bottle even with fenders in place.
I personally gave up on that location for a waterbottle...
Have fun!