I saw a mod attempt this recently, but came up short. So, this is my version of the colored water idea.
(All 16 colored waters shown, plus vanilla water on far right)
These waters will not mix with other liquids (including vanilla water), so they are safe to use together to make fancy patterns.
Crafting recipe is a water bucket and any dye placed anywhere on the crafting grid.
New in b32: Glowing colored water! You can now craft water that illuminates light around it (intensity depends on the water level). This can be useful in many ways, my favorite is to light up my crop farms so they continue to grow at night without ugly torches or expensive light blocks everywhere.
To obtain a glowing colored water simply add a glowstone dust to the normal colored water recipe.
Clickspoiler to see previous issues that have been fixed.
When crafting a colored water an empty bucket gets placed in the crafting grid (bucket item duplication)Fixed in b14 Recipes only unlock after obtaining the colored water bucketsFixed in b15 When swimming under colored water, the default water blue overlay is usedFixed in b16 Does not spawn water dripsFixed in b21 Missing underwater "suspend" particlesFixed in b22 Spawns blue air bubblesFixed in b23 Spawns blue splash particlesFixed in b24 Rain spawns blue splash particlesFixed in b24 Spawns blue splash particles from water dripsFixed in b29 Does not spawn water particles while fishing (splash, and water_wake) I fixed with Forge PR #4585PR was accepted. Fixed in b29 with Forge build 2568 Colored water does not have vanilla's "infinite supply" propertiesFixed in b36