Well.....
At the station we owned, we have Coalescer filters, which, will not allow water to pass through them. So in our case, if there was water in the tank and it got tot he filter, the pump would slow own.
It got to the point that when they pumping would slow down as compared to the norm, we would simply swap out filters and be good to go for another 20 to 30 days.
So the answer is yes,,, it can indicate water in the fuel depending on what type of filters are used in-line.
If they are for dirt only, then no, it will pump water just as though it was gas...