--- a/net/minecraft/world/item/ItemBlock.java
+++ b/net/minecraft/world/item/ItemBlock.java
@@ -33,6 +33,13 @@
 import net.minecraft.world.level.gameevent.GameEvent;
 import net.minecraft.world.phys.shapes.VoxelShapeCollision;
 
+// CraftBukkit start
+import net.minecraft.server.level.WorldServer;
+import org.bukkit.craftbukkit.block.CraftBlock;
+import org.bukkit.craftbukkit.block.data.CraftBlockData;
+import org.bukkit.event.block.BlockCanBuildEvent;
+// CraftBukkit end
+
 public class ItemBlock extends Item {
 
     public static final String BLOCK_ENTITY_TAG = "BlockEntityTag";
@@ -71,6 +78,12 @@
                 return EnumInteractionResult.FAIL;
             } else {
                 IBlockData iblockdata = this.getPlacementState(blockactioncontext1);
+                // CraftBukkit start - special case for handling block placement with water lilies and snow buckets
+                org.bukkit.block.BlockState blockstate = null;
+                if (this instanceof PlaceOnWaterBlockItem || this instanceof SolidBucketItem) {
+                    blockstate = org.bukkit.craftbukkit.block.CraftBlockStates.getBlockState(blockactioncontext1.getLevel(), blockactioncontext1.getClickedPos());
+                }
+                // CraftBukkit end
 
                 if (iblockdata == null) {
                     return EnumInteractionResult.FAIL;
@@ -87,6 +100,19 @@
                         iblockdata1 = this.updateBlockStateFromTag(blockposition, world, itemstack, iblockdata1);
                         this.updateCustomBlockEntityTag(blockposition, world, entityhuman, itemstack, iblockdata1);
                         iblockdata1.getBlock().setPlacedBy(world, blockposition, iblockdata1, entityhuman, itemstack);
+                        // CraftBukkit start
+                        if (blockstate != null) {
+                            org.bukkit.event.block.BlockPlaceEvent placeEvent = org.bukkit.craftbukkit.event.CraftEventFactory.callBlockPlaceEvent((WorldServer) world, entityhuman, blockactioncontext1.getHand(), blockstate, blockposition.getX(), blockposition.getY(), blockposition.getZ());
+                            if (placeEvent != null && (placeEvent.isCancelled() || !placeEvent.canBuild())) {
+                                blockstate.update(true, false);
+
+                                if (this instanceof SolidBucketItem) {
+                                    ((EntityPlayer) entityhuman).getBukkitEntity().updateInventory(); // SPIGOT-4541
+                                }
+                                return EnumInteractionResult.FAIL;
+                            }
+                        }
+                        // CraftBukkit end
                         if (entityhuman instanceof EntityPlayer) {
                             CriterionTriggers.PLACED_BLOCK.trigger((EntityPlayer) entityhuman, blockposition, itemstack);
                         }
@@ -94,9 +120,9 @@
 
                     SoundEffectType soundeffecttype = iblockdata1.getSoundType();
 
-                    world.playSound(entityhuman, blockposition, this.getPlaceSound(iblockdata1), SoundCategory.BLOCKS, (soundeffecttype.getVolume() + 1.0F) / 2.0F, soundeffecttype.getPitch() * 0.8F);
+                    // world.playSound(entityhuman, blockposition, this.getPlaceSound(iblockdata1), SoundCategory.BLOCKS, (soundeffecttype.getVolume() + 1.0F) / 2.0F, soundeffecttype.getPitch() * 0.8F);
                     world.gameEvent(GameEvent.BLOCK_PLACE, blockposition, GameEvent.a.of(entityhuman, iblockdata1));
-                    if (entityhuman == null || !entityhuman.getAbilities().instabuild) {
+                    if ((entityhuman == null || !entityhuman.getAbilities().instabuild) && itemstack != ItemStack.EMPTY) { // CraftBukkit
                         itemstack.shrink(1);
                     }
 
@@ -132,6 +158,21 @@
 
         if (nbttagcompound != null) {
             NBTTagCompound nbttagcompound1 = nbttagcompound.getCompound("BlockStateTag");
+            // CraftBukkit start
+            iblockdata1 = getBlockState(iblockdata1, nbttagcompound1);
+        }
+
+        if (iblockdata1 != iblockdata) {
+            world.setBlock(blockposition, iblockdata1, 2);
+        }
+
+        return iblockdata1;
+    }
+
+    public static IBlockData getBlockState(IBlockData iblockdata, NBTTagCompound nbttagcompound1) {
+        IBlockData iblockdata1 = iblockdata;
+        {
+            // CraftBukkit end
             BlockStateList<Block, IBlockData> blockstatelist = iblockdata.getBlock().getStateDefinition();
             Iterator iterator = nbttagcompound1.getAllKeys().iterator();
 
@@ -146,11 +187,6 @@
                 }
             }
         }
-
-        if (iblockdata1 != iblockdata) {
-            world.setBlock(blockposition, iblockdata1, 2);
-        }
-
         return iblockdata1;
     }
 
@@ -163,8 +199,15 @@
     protected boolean canPlace(BlockActionContext blockactioncontext, IBlockData iblockdata) {
         EntityHuman entityhuman = blockactioncontext.getPlayer();
         VoxelShapeCollision voxelshapecollision = entityhuman == null ? VoxelShapeCollision.empty() : VoxelShapeCollision.of(entityhuman);
+        // CraftBukkit start - store default return
+        boolean defaultReturn = (!this.mustSurvive() || iblockdata.canSurvive(blockactioncontext.getLevel(), blockactioncontext.getClickedPos())) && blockactioncontext.getLevel().isUnobstructed(iblockdata, blockactioncontext.getClickedPos(), voxelshapecollision);
+        org.bukkit.entity.Player player = (blockactioncontext.getPlayer() instanceof EntityPlayer) ? (org.bukkit.entity.Player) blockactioncontext.getPlayer().getBukkitEntity() : null;
+
+        BlockCanBuildEvent event = new BlockCanBuildEvent(CraftBlock.at(blockactioncontext.getLevel(), blockactioncontext.getClickedPos()), player, CraftBlockData.fromData(iblockdata), defaultReturn);
+        blockactioncontext.getLevel().getCraftServer().getPluginManager().callEvent(event);
 
-        return (!this.mustSurvive() || iblockdata.canSurvive(blockactioncontext.getLevel(), blockactioncontext.getClickedPos())) && blockactioncontext.getLevel().isUnobstructed(iblockdata, blockactioncontext.getClickedPos(), voxelshapecollision);
+        return event.isBuildable();
+        // CraftBukkit end
     }
 
     protected boolean mustSurvive() {
@@ -239,7 +282,7 @@
 
             if (nbttagcompound != null && nbttagcompound.contains("Items", 9)) {
                 NBTTagList nbttaglist = nbttagcompound.getList("Items", 10);
-                Stream stream = nbttaglist.stream();
+                Stream<net.minecraft.nbt.NBTBase> stream = nbttaglist.stream(); // CraftBukkit - decompile error
 
                 Objects.requireNonNull(NBTTagCompound.class);
                 ItemLiquidUtil.onContainerDestroyed(entityitem, stream.map(NBTTagCompound.class::cast).map(ItemStack::of));