It begins with the sugarcane pulp, which is processed into various forms: from the liquidsugar used to make soft drinks, to the more syrupy sugar used to make hard candy, VHP sugar for exportation, refined and granulated sugar.
Dry water resembles a very fine powder (like icing sugar or flour) that has a slightly more liquid-like appearance when it flows, and if you squeeze some of it in your hand hard enough the powder combines to give you a few drops.