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On my 91 7.3 the water in fuel light ( I think this is what your talking about) sender is located below my fuel filter, left front of the engine as you look at it from the front...I would think that they aren't all the same but thats ware mine is.
It lights up if there is water present in the filter...water is no good for a desiel, lol. on my truck there is a drain valve at the bottom that I can open to drain the water if any. I think there's a procedure to drain it properly, but I don't know it. I allways open it up and drain the water and allways end up with air in the system and it runs rough for a bit and then clears up, hope that helps :>)
On the 84 the water seperator, if the stock one is still on the truck, is located on the firewall between the drivers side hood hinge and the brake booster.
Pull ring on the top.
The old style water seperators were famous for leaking air into the fuel system, many have been replaced.
If yours is still there, shove a bolt in the drain hose after you drain it, so it does not let air in.
Yours also may already have a bolt in the drain line, so you may need to remove the bolt before you can drain it.
Drain with the engine off on the old style system.
OK...I found that...plug on top was pretty contaminated...so I at least cleaned it out...and of course the top of the filter was filled with pine needles compost (used to be something) and dirt...all clean now as well.
I did not reinstall the dash yet...still trying to get that small fist sized mud dauber's nest out of the passenger side air duct....but I will certainly let you know.
The plug I was referring to was the electrical plug. The "plunger" or release operated just fie and I pulled it and and released a few times.
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