The way I understant the WIF sensor works is that when the two probes complete a circuit the light comes on. Diesel fuel has poor electric conductivity, but water which tends to settle to the bottom of the filter has high conductivity. When water settles between the two probes, the circuit is complete.
There could also be water on the plug in for the sensor - Whenever I cross streams a bit to fast, the WIF light comes on and so I stop and unplug it to dry it as the light drives me nuts.
Alternatively you could just unplug the harness, but then you really don't want any water going into the fuel pump if you do have water.
Of course, I could be totally wrong...
Jacek