When water flows the game acts like you are in the water even if you are 2 blocks away. It makes redstone builds very difficult to build if the game constantly believes I am in water even though I am 2 blocks away/through a wall. It does not effect anything except for the player that I am aware of. If I walk into the edge of the block in front of me all of the water physics engage. Even though I would be touching a chest. This is not the only block configuration that this issue occurs.  It occurs in every block now that is near flowing water like this.

Edit: I would show proof but your website doesn't even allow 5 second videos. Ridiculous