We present wireless optical communication system for data transfer in the underwater networks. We use the optical channel to facilitate the communication link in free space and under water. This work bypasses the limitations involved in the use of electromagnetic waves and acoustics for free space and underwater communication. The system shows that optical communication using light can be a viable solution for underwater data transmission applications that requires high data rate at the moderate distances. We have designed, implemented and tested our system in real time and provide the evaluations results.