I have read, maybe in these forums, the ball is supposed to float in water, not in fuel, to cut off most water from getting to injectors where water does damage. Somewhere I also read the water WILL pass in small quantities thru RACOR filters themselves...not enough to keep an engine running if the ball is floating and blocking the fuel passage, but enough to let water to the secondary filters.
I figure that's why one of my metal secondary filter cannisters rusted thru on the bottom.
Original 1970's era RACOR filter bowls can be replaced with new ones permitting a water detection probe to be used. It will singal an alarm if water rises about 2 inches or so in the bowl. Together with vacuum guages, not requring filter bowl replacement, you can have good assurance of clean and adequate fuel to your engines. I mounted the alarms on my flybridge helm where I always ran my Hatt.