The present invention is a water cut monitor which includes a settling tank in which a quantity of fluid from a producing well is accumulated. The fluid is removed as a stream of fluid after a predetermined interval from the accumulation of the fluid by the settling tank so as to allow the accumulated fluid to separate into three phases: free water, water-continuous and oil-continuous. The flow rate of the stream of fluid is measured and a corresponding flow rate signal is provided as well as a temperature signal corresponding to a sensed temperature of the stream of fluid. The water cut monitor includes a plurality of electrodes in contact with the fluid. Injection electronics connected to at least one of the electrodes provides an injection voltage and injection current to the fluid stream and also provides signals corresponding to the injection voltage and injection current. A voltage in the fluid stream is measured and a measurement signal provided. A computer determines the water cut of the petroleum stream in accordance with the temperature signal, the injection voltage and injection current signals, the electrical phase angle signal and the measured voltage signal.