Theoretical arguments about underwater sound localization predict that auditory cues used in air are impaired in water, resulting in a theoretical inability to locate sounds under water. An azimuth identification task was conducted under water for 8 positions (0°, 45°, 90°, 135°, 180°, 225°, 270°, 315°) and 3 signals (400 Hz sine, 6 kHz sine, white-noise). Results demonstrate that localization was possible, at least for lateral positions, indicating that interaural cues are processed. The absence of spectral pinna cues may explain a large front/back confusion pattern.