Translucent/Transparent textures become invisible when viewed through Water or other Translucent Textures

When viewing an entity or block that has Translucent pixels (not at 100% or 0% opacity) as part of its texture/data, those textures become completely invisible when viewed from within water and any other block that is Translucent.

It seems that Translucent textures don't mix, meaning only the first one the player sees is rendered while the second one isn't, when both should be able to render.