Buckets

A bucket is used to carry liquids in Terraria (currently only Lava and Water exist). Bucket can contain one full square of liquid and useful for moat building, obsidian creation or any other building projects.

Click on liquid with Empty Bucket to transport it (water will make a Water Bucket, lava - Lava Bucket). Liquid can be poured elsewhere, even in mid-air.

It's also possible to wear an Empty Bucket as a helmet. It gives +1 defense.