Auto detection of high level water content for oil well is a system that measures the percentage of water in crude oil. This paper aims to discuss an auto detection system for measuring the content of water level in crude oil which is applicable for offshore and onshore oil operations. Data regarding water level content from wells can be determined by using automation thus, well with high water level can be determined immediately whether to be closed or not from operations. Theoretically the system measures the percentage of two- fluid mixture where the fluids have different electrical conductivities which are water and crude oil. The system made use of grid sensor which is a grid pattern like of horizontal and vertical wires. When water occupies the space at the intersection of vertical and horizontal wires, an electrical signal is detected which proved that water completed the circuit path in the system. The electrical signals are counted whereas the percentage of water is determined from the total electrical signals detected over electrical signals provided. Simulation of the system using the MultiSIM showed that the system provided the desired result. © 2010 American Institute of Physics.