Setup:

Place a hollow 3x3 of any material in a horizontal fashion, I used stone.

Place a soul sand underneath the gap.

Place a dispenser which dispenses water on one of the sides pointing into the gap, instead of a block.

Dispense the water, retract it, and place any mob (I used Armor Stands and Chickens.

What this water can do:

• Turn into stone, cobblestone, or Obsidian when touching lava. (Cobblestone and Obsidian are impossible, see below.)
• Generate particles and sounds idly or if entities are in it, including the player.

What this water cannot do

• Flow, this will break the glitch.
• Be seen.
• Affect movement like water.
• Drown you or other entities
• Get pushed up by the soul sand underneath but this will create particles.
• Be bucketed.

Imgur Video: http://imgur.com/a/2jCF9Dp