I can use /setblock to place water in the Nether.
What I expected to happen was it to make steam.
What actually happened was that water was placed in the Nether.
Steps to Reproduce:
1. Go to the Nether on 1.8.7
2. /setblock ~ ~ ~ water
3. Water should be produced. (still form)
Water was always placable in the Nether, it was only changed how:
14w03a
Added the /fill command which can place water in the Nether.
14w26a
water and flowing_water removed from the /give command.
http://minecraft.gamepedia.com/The_Nether#History