I have 3 Zwave Utilitech Water Sensors, what would make them able to report battery but not water? It seems to me that if they communicate battery level via zwave then they should be able to trigger when wet and dry.
Seems like a reasonable enough assumption to me. 
The first thing I'd wonder is if the batteries are, in fact, low--maybe that could interfere with the actual detection mechanism. I wouldn't trust battery reports from the device (nothing against this device in particular; most devices just have unreliable battery reporting), so if they're old you might want to change them anyway to see if it helps.
If that's not it, has it ever worked? If not, maybe try excluding and re-pairing the device to see if that helps. If it supports security, you might also see if you have better luck with or without.
Before you do that, you might also want to check that the device isn't really sending a message that the driver is ignoring: turn on debug logging for the device, open "Logs" on the hub, and see if anything happens when it should send a "wet" (or "dry") event that doesn't actually get "parsed" into a Hubitat event. Assuming what you see is a meaningful Z-Wave report, that could mean a problem that would need to be fixed on the driver side.
I can't help you. I have a bunch of them, and my experience is the opposite. They don't report battery and they always work. In fact, I just went down to the basement and tried one-it worked. So, my problem is when to replace the batteries.
These are all good suggestions. Especially got my attention was the idea of checking the batteries, since a few months ago I got a package of lithium AA and some were DOA. But after checking the ones in these things (they take 3 AA's) they all seem ok. I did the logging thing too and I'm not sure what is going on, since one shows it reporting properly but not the other one. So, I moved them closer to the hub and they both started reporting, So, I guess that means they are not connecting thru the network like I thought. They have been in the location a few months and I guess they have not established a connection thru the repeaters, but I don't know why. I'm using the Generic Z-Wave Water Sensor driver on them but since they work close to the hub I don't think that is the problem. There maybe something wrong with the repeater(s) so I guess I will check in to that.
