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Best Answer: Water has a higher index of refraction than air. When light reaches a boundary between two media with different indices of refraction, part of the light is refracted, and part is reflected.
As the water depth decreases and the light is able to penetrate all the way to the bottom, the makeup of the floor becomes a factor in determining water color. For example, the coarse Caribbean coral is going to reflect light differently than the fine sand found in the Northeast. These differences in absorption and reflection affect visibility as well as color. Whatever light is not reflected back from the top layer of water or the bottom of the sea floor is absorbed by something in the water.