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Underwater photographer Zena Holloway, has retold the story, along with illustrator Heidi Taylor in a very magical way. The book follows the story of a young boy, a chimney sweep, named Tom, who has a series of underwater adventures. As per the subjects in the original story, Zena's photographs are mainly of children - underwater.
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The project took her two years and is now available as a book. I've included a picture of Zena at work below, to give you some sense of her process (and patience!).
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Even if you're not familiar with the story, you can see the fairy tale quality of the images captured so beautifully in the small selection I'm posting here.
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Her additional underwater film and photography work including her 'Underwater Angels' (shown on her website) is well worth your time to browse.
NOTE: To give you a sense of the era The Water Babies was written in, Lewis Carroll's "Alice's Adventures in Wonderland" was published in 1865, also in England.