Palio diesel water sensor fault

I know this issue, I also drive a Palio. Water in the diesel fuel can trigger the water sensor, even if there isn't much. The sensor could be faulty, or, as you mentioned, it might just be a bad connection. Have you checked the sensor's plug and wiring for corrosion or damage?

Thanks for the quick response! So, when you had this problem, was it consistently throwing the engine light, or was it intermittent? Also, where exactly is the water sensor located? I want to give the plug and wiring a thorough check.

Mine was consistent once it started, always the engine light. The water sensor is usually screwed into the fuel filter housing. Checking the connection is a good idea. If that looks fine, honestly, you're probably best off taking it to a workshop for proper diagnostics before you start throwing parts at it.

Appreciate the advice! I wiggled the connector a bit and that seemed to make it worse, so I took it to my mechanic. Turns out it was a faulty connector like we suspected. They cleaned it, replaced a short section of wire, and cleared the codes. Cost me 95€, but now my Palio is running smooth again!