Two different things here.
The water watch device - and the reason for the common rail not liking water - is water in the fuel. Water compresses at a different rate to diesel, so when it's pressurised in a common rail system (up to 30,000psi, the world works differently at these extremes) the water basically can cut through metal like a knife through butter. Water will emulsify in diesel but won't dissolve - it will sit on the bottom of the tank and be the first thing picked up. Watch Watch will alert you to the presence of water in the fuel.
The other thing is the air box - this can be drowned. Two ways we've seen - bonnet deep in water without a snorkel (or a poorly fitted snorkel) or in a D22 through a puddle 300mm or deeper a little too fast - the water rushes up inside the guard, enters the air intake and it's all over. ALL of these can be rectified with a properly installed and sealed snorkel.