I was in a one block deep, small pond and then pressed F5 to view behind me, and when I moved the camera below the surface of the water the screen went completely white. The same thing happens when the player is submerged in FirstPerson mode.
MOD EDIT:
Only occurs when wearing a Respiration X enchantment.
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Unable to reproduce. Leaving it open.

Would uploading the world possibly help?

What about a seed so I can test the same location. (/seed)

Seed: 5003908156065121602
Co-ordinates:
X: 766
Y:62
Z:-49

Still unable to reproduce. I'll leave it unconfirmed.

I think it was my Chainmail helmet Because it only does that when I am wearing it, though now it isn't as severe as it was before.

Cannot reproduce either. Resolving as 2 mods cannot reproduce.

Any chance you are using a texturepack?

It was complete vanilla, no texturepacks.
The enchantments on my helmet were:
Protection X
Fire Protection X
Blast Protection X
Projectile Protection X
Aqua affinity X
Respiration X
Thorns X
Unbreaking X

I feel like I have done this wrong I should've researched it more thoroughly before reporting it.

Nope, I would have reported it as well.

I think that this can be caused by Respiration X. Probably, as much level you get for Respiration, as the water is brighter. When it is on 10 level, it causes a 'reversed' effect (I know some of the 'reversed' effects when using /effect command [like blocked jump, blocked hand-attacking, etc., but I don't post it as the bug because they are awesome for map-making!], but it works only when being under water.)

I'm guessing that's it.
>The “Respiration” enchantment now also helps seeing underwater

Confirmed to occur with Respiration X.

Confirmed for 13w23b. You should update the versions affected if you want this fixed.

Thanks, for updating it for me been busy lately.

this is still occurring in minecraft 1.6.2

Checked personally on 1.6.1, using a Bukkit server that allows illegal enchantments, and the effects worsen as the level of Respiration goes up. At level 100, the screen is almost completely white, and there is moderate-severe lag.
Furthermore, when illegal enchantments are used [ > Respiration 3 ], these messages keep appearing in the Development Console in the launcher:
Client> 2013-07-17 16:44:19 [CLIENT] [SEVERE] ########## GL ERROR ##########
Client> 2013-07-17 16:44:19 [CLIENT] [SEVERE] @ Post render
Client> 2013-07-17 16:44:19 [CLIENT] [SEVERE] 1281: Invalid value
EDIT: Also, at levels 101 and greater of Respiration, the screen does not turn white, but the above messages still repeatedly show up.

Josh: That particular variation of the issue needs to be replicated under vanilla Minecraft.

@GrygrFlzr: Client is vanilla, server is CraftBukkit.
I only added above as extra info from the client launcher's development console.

Josh: I notice. CraftBukkit is still non-vanilla even with a vanilla client. It does change the behavior of Minecraft.

Questions I wish to pose:
1) How does CraftBukkit affect the vanilla client in other ways?
2) How would one achieve Respiration at levels higher than three without using external modding tools?
3) Does this issue affect all the valid levels of Respiration?

I encounter the same problem and I'm sure it can be reproduced.
Just "Quit Game" and launch the game (I'm using Vanilla Minecraft 1.6.2) again with the Launcher!
Simply putting on the enchanted helmet again after taking it off never works on me.

Reproduced in vanilla survival singleplayer. Client log gets spammed with:
[SEVERE] ########## GL ERROR ##########
[SEVERE] @ Post render
[SEVERE] 1281: Invalid value
This message appears each game tick until the helmet is taken off or the player exits the water.

that happened to me too. Im not happy.

Can we confirm if this still exists in 1.6.4?

It does if your wearing aqua infinity armor.

[Mojang] Dinnerbone (Nathan Adams):
Any effect outside of those provided in vanilla circumstances should be considered unsupported officially and may or may not work as you'd expect.
https://mojang.atlassian.net/browse/MC-32172?focusedCommentId=113254&page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel#comment-113254

Respiration increases the visibility of the player in water by 25% (not sure) per level, any other levels more than 3 will extremely brighten water visibility since it exceeds 100%, respiration X will give you 250% more visibility (level x 25%), making it very bright
(Minecraftwiki - Enchanting)

@unknown Just for future refrence, the wiki is not an official source.