If you place a sugar cane in a water tile (with dirt under it) you can place the sugar cane. This even works many water blocks down. like shown in the pictues
MC-103189
Sugar Cane in water
Resolved
Duplicate
0
Rick D
(Unassigned)
Unconfirmed
Minecraft 1.10 Pre-Release 1, Minecraft 1.10 Pre-Release 2
Retrieved
Yes! Came here to report it, searched for it and you have already found it! Added some photos because I had them.