How is water in milk detected?
Not by the fat. Watered milk shows up first in the SNF or the lactometer reading.
Water dilutes everything in milk, but a dairy notices it in the solids first. SNF falls and the lactometer float sits lower, giving a lower CLR.
This is the practical argument for pricing on fat and SNF together rather than fat alone: a fat-point rate cannot see water that has not touched the cream.
Several of the analysers Dairywala reads report added water as its own figure — the STPL and Ekobond family and the Essae family both do. Dairywala reads that value; whether you act on it is a decision for the dairy, not the software.
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