Bottled Water

Added in 1.05, Bottled Water is crafted from Bottle while standing near a body of water. It also does not lower the water level. This allows for the creation of bottled water farms. Contrary to popular belief, it is not required to be directly in a body of water to create this item, instead you only have to be close to it, like other crafting stations.

Bottled Water heals you for 20 HP instantly when used, but does not give you the empty Bottle back. It also used as material to make every Buff Potion in the game.

This may be a glitch but you can also make bottled water near pools of lava.