Water Chest

This chest can be found in the ocean near the map edges and underwater.

Since of update 1.2 they can now also be found in pools of water in the Underground Snow Biome. It is possible to be a bug.

Loot
Besides one of the items listed here they have the common items depending on the height they were found: Surface, Underground or Caverns.

Note: Water Walking Boots have only 1:15 spawn chance compared to others.