What We are About to Create
Step 1
Create a new document with the following settings and background color to white. Then, apply a Fibers Filter. Go to Filter - Render - Fibers.
Step 2
Now, go to Image - Image Rotation and choose the option 90 CW.
Step 3
Apply a Motion Blur Filter, and then a Gaussian Blur.
Step 4
Now, we need to apply another filter, that is going to simulate the water later. Go to Filter - Sketch - Chrome.
Step 5
Duplicate the layer and change the new one's blending mode to Overlay. Duplicate the duplicated layer and change the blending mode to Screen.
With the last duplicated layer selected, press CMD (control) + L. The Levels panel will pop up. Grab the Black Eyedropper tool and select a middle gray on the image to give it a little bit more contrast, like is shown bellow.
Step 6
Now let's save and close our document.
Create a new document with the same size of the previous one.
Step 7
Import texture to our document. Scale and position it as you wish.
Step 8
Download this photo and import it. Then add a Drop Shadow and a Stroke layerstyle to it.
Step 9
Merge the document by pressing CMD (control) + Shift + E. Now, we're going to apply the Displace Filter. Go to Filter - Distort - Displace. Leave the default settings as they are and click ok. When a pop up window comes up choose the PSD document we've done earlier.
Step 10
One last detail. To add a more realistic look let's add a real water texture. Download this image and increase its size till you see only water, like the right bottom corner of it. Change the Blending Mode to Color Burn. If you think its a little to dark, try do decrease the opacity.
Final Result
