Emily's Cat
Rarely prone to hissy-fits
Proximity to a star is not essential for liquid water. There are oceans of water under the surface of several of the moons of Jupiter and Saturn, where life might well exist.
But being too close to the star prevents the formation of liquid water, as well as increases the damage from stellar ejections, radiation, etc.
There's a generally accepted "habitable zone" for planets where it's possible for liquid water to form, and thus for life (as we know it) to evolve. Planets need to be close enough to receive enough energy to prompt the formation of complex organic molecules, but far enough away that the formation of liquid water isn't impossible. For red dwarfs, in order to have enough energy to develop complex organic molecules, the planet also has to be so close that it can't form water. There is no habitable zone.