1.7.1 Network Water Bug

When playing in singleplayer, the water looks good. Nothing wrong there. When I host a server, however, only the hosting computer renders the waterblock. Any other computers that join the hosted server do not have water rendered. They react to the the water, ie crossbow bolts make splashes and bubbles, but the water is not there. I've tried switching the hosting computer and joined the server from a different computer, but the problem persisted. This happens with stock 1.7.1.