An apparatus with embedded water detection and heater includes a substrate including a number of conductive traces and a lid including multiple electrodes. Each electrode is coupled to at least one of the conductive traces through vias. A sensor is placed inside a cavity of the lid and is electrically coupled to one or more conductive traces of the substrate. A gel at least partially fills the lid and covers the sensor. The presence of water on the apparatus is detected by measuring a dielectric permittivity between at least two of the plurality of electrodes, and the electrodes can generate heat to eliminate the water.