I Was using the /setblock command and when I did /setblock ~ ~ ~ water ,in the the nether it made a water source.
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Works as intended

This doesn't really affect survival gameplay (which is why you can't place water without cheating) so it is slightly insignificant.

Though it is meant to be like this since /setblock only has the parameters you give it, it wont really effect overall gameplay. /setblock doesn't care about any other things than its parameters given by the player.