Abstract: A bag type device (2) for extracting water from oil includes a bag (3) with an outer layer of felt (20) lined by at least one layer (22) of water absorbing laminate. The interior of the bag is composed of a plurality of slit sheets of water absorbing laminate forming a plurality of finger-like strips (35) depending from adjacent the top of the bag. The strips are preferably longer than the length of the bag. The bag and the water-absorbing layers within the bag are supported by a wire ring (30) stitched into a hem around the open upper end of the bag. As oil is passed through the bag, the finger-like strips provide an increased surface area for absorption of water from the oil. The strips can expand inwardly and toward the oil flow to prevent back-pressure build up within the bag.