This invention relates to a measurement tool and method of use, and in particular to a measurement tool for use in determining a parameter of a stationary or moving fluid. The measurement tool has been designed primarily for use in borehole formation testing. The measurement tool can measure the dielectric constant of a fluid within a pipe or surrounding the tool. The pipe or wall between the tool and the fluid is electrically insulating. The tool has pair of capacitor plates mounted adjacent to the pipe or wall, a signal generator which can deliver an alternating electrical signal to at least one of the capacitor plates, and a detector for measuring a signal dependent upon the electrical capacitance between the capacitor plates. The measurement tool can additionally measure the electrical resistivity of the fluid.