If you are hoping to be get some crisp, clear, digital photos of the Loch Ness Monster or Shamu the Killer Whale you're in luck. If you have the proper underwater housing unit, most digital cameras can be used underwater. However, some of these housings may interfere with your camera's mode dial. You can also get specialized cameras that are designed specifically for underwater use. Many camera manufacturers produce underwater models and some companies specialize in them. Underwater camera accessories and lighting are also available.
Make sure you check the maximum depth rating on your underwater camera before you dive. And yes, underwater cameras can also be used above water. These cameras and housings are available in various materials, colors, sizes and shapes. Underwater cameras can be found for less than $300.