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After i got my Xperia Z underrwater my power button is not responding and i have to unlock my phone by using the volume up button, i have also checked the water damage indicators but they are all still white.
have you check all of the water damage indicators? there are 4
yes i have checked them and they are all still white
that's odd, lets narrow down the problem
repair your phone with SUS
Update Service (SUS)
http://www.sonymobile.com/gb/tools/update-service/
http://www-support-downloads.sonymobile.com/Software%20Downloads/Update_Service_Setup-2.11.12.5.exe
Bridge (for Mac)
Alternatives on How to backup Xperias
http://talk.sonymobile.com/thread/36355
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I have a such problem. Power button don't work after full recharged. But function of power button do button volume up.
wat are these water damage indicators? 
the indicators you see under the flaps are to show you if water has leaked in or not
if it's still white color after you had your xperia z in water then water did not leak in but if they turn red/pinkish color then it means water have leaked into your phone 