An example of water (together with lava and honey) placed to be used as a crafting station. Notice the Crystal Ball
Some items are simple enough to be created without tools or the use of a traditional crafting station but do require water. Simply standing in or next to air-open body of water is enough to craft these items. Creation of items from a body of water does not lower the water level at all. A single tile from a Bucket is often used to create a man made crafting station.
Water can also be used to make the following items, though not as a crafting station: