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I had the same problem on a Peugeot 405 Turbo Diesel. The problem turned out to be the water-in-diesel sensor itself - so I have ignored it for the last 5 years! It is probably the water-in-diesel sensor which is At Fault. I have had the same problem for over 5 years on a 405 turbo diesel - so I have ignored it.

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Q: How do you purge the diesel filter on your Peugeot 205 as it has water in it according to the warning light?
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