A select-fill dispensing system and method for a dispenser assembly utilizes a camera to sense a desired fill level based on the location of a user's finger with respect to a container. In use, a consumer places his or her finger along a container to indicate the desired fill level of the container. Image data from the camera is transmitted to a controller and processed for distortion correction, edge based image segmentation and morphological operations are carried out to remove background noise. The processed image data is utilized to detect the presence of the container, as well as the shape of the container, the position of the container opening, and the top and bottom points of the container. The controller provides a means for controlling the dispensing operation, including a fill rate, based on the desired fill level and the shape of the container.