Suigetsu's ability to turn into Water is a Hozuki Clan Technique

Kabuto: It's the ability to transform one's flesh into liquid.

To detach and separate using one's own life substance...that's why it looks like a shed. //

// I've applied the Hozuki clan's flesh transforming ability to this technique. //

// You know who I mean, right? Suigetsu.

He can transform from human to water...back to human again. //