Water in water cauldrons is not rendered transparent, unlike regular water.
This probably relates to MC-9266 where the same effect can be seen while the HUD is disabled.
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Transparent as long as HUD is turned on.
Using
OpenGL: GeForce FX 5200/AGP/SSE2/3DNOW! GL version 2.1.2, NVIDIA Corporation
Maybe related to MC-1607.
Confirmed with
AMD Radeon(TM) HD 6520G GL version 4.1.11156 Compatibility Profile Context, ATI Technologies Inc.
Confirmed in 1.5.1 on Linux
$ uname -rms
Linux 3.8.4-1-ARCH x86_64
$ java -version
java version "1.7.0_17"
OpenJDK Runtime Environment (IcedTea7 2.3.8) (ArchLinux build 7.u17_2.3.8-1-x86_64)
OpenJDK 64-Bit Server VM (build 23.7-b01, mixed mode)
$ lspci -s 01:00.0
01:00.0 VGA compatible controller: NVIDIA Corporation G94 [GeForce 9600 GT] (rev a1)

Still with AMD Catalyst 13.4:
OpenGL: AMD Radeon HD 6700 Series GL version 4.2.12217 Compatibility Profile Context 12.104.0.0, ATI Technologies Inc.

Is this still a concern in the current Minecraft version? If so, please update the affected versions in order to best aid Mojang ensuring bugs are still valid in the latest releases/pre-releases.

Still happening with Catalyst 13.9:
OpenGL: AMD Radeon HD 6700 Series GL version 4.2.12422 Compatibility Profile Context 13.152.0.0, ATI Technologies Inc.
and Catalyst 13.10beta:
OpenGL: AMD Radeon HD 6700 Series GL version 4.3.12441 Compatibility Profile Context 13.200.11.0, ATI Technologies Inc.

Fixed in 1.7.2 except cauldron water.
Cauldron water issue confirmed in 14w04b.
Confirmed for 1.7.5, 14w08a and 14w10c

Gary Closse, WolfieMario: What graphics card do you have ?
Confirmed for 14w18b (using an Intel HD 4000).

Also confirmed for 14w18b with AMD HD 6700 with Catalyst 14.4
Confirmed for 14w25b
Cauldrons do not support partial transparency, no?

They do (edit) no longer with NVIDIA graphics cards.

Appears to affects 20w45a. Can I request ownership of this ticket?

This also appears to affect tripwire hooks, specifically when attached to a tripwire itself. Screenshot forthcoming.
Can confirm in 21w03a.
Can confirm in 21w05b.
Can confirm in 21w06a.
Can confirm in 21w07a.
Can confirm in 21w11a.
Can confirm in 21w14a.
Can confirm in 21w15a.
Can confirm in 21w17a.
Can confirm in 1.17.
Can confirm in 1.17.1.
Can confirm in 1.18.
Can confirm in 1.18.1.
Can confirm in 1.18.2.
Can confirm in 1.19.
Can confirm in 1.19.2.

Fixed it will causes a new rendering issue, a better approach is to separate the water inside the cauldron from the cauldron itself.
[media]
Confirmed in 1.21.3

Confirmed in 1.21.4 release candidate 3.

Affects 25w05a

Affects 25w06a

Confirmed for 1.20.4.

I meant 1.21.4