OMG, it's working! (option one tested)Updated schematic if sensor has pullup resistor.
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Without pullup resistors. Looking at the image in post #2, don't see a pullup resistor.
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I was just about to post when I seen your postDid you check those sensors to see if they have a pullup resistor?
The black lead should measure 0 volts with the sensor not activated by the water.

You always beat me to itDid you try option #2 just curious?
Will doStick with option 2 one less diode.
How many pc boards do you need?
Mainly where you purchase the components like DigiKey or Mouser. None of the parts are critical. Electrolytic or tantalum for the cap is fine, 1/8 watt resistors will suffice.Could you please comment on the components you would use?
That's great!Mainly where you purchase the components like DigiKey or Mouser. None of the parts are critical. Electrolytic or tantalum for the cap is fine, 1/8 watt resistors will suffice.



Interesting, will try that today.The first issue sounds like the wires to the sensors are acting as an antenna and by holding the wires your body capacitance is reducing the interference, but doesn't make sense that the second board does not have the same issue when using the same setup. Possible the pc board layout may be the problem
The second board with the different power supply is probably getting some interference from that switching power supply since the problem is eliminated when moved 3/4 inch.
Couple of things to try are:
Replace the C1 caps with 100uf. If that doesn't help then add C2 a 10uf capacitor from pin 4 to ground.
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