It probably doesn't help that you are likely to have a lot of turbulence in the sensor pipe, which may be partially cancelling your signal. I assume the water inlet is the end with the pressure gauge. The small inlet fitting bore will be creating a jet down the center of the pipe with back-eddies at the sides, and then the upstream guard electrode will introduce further turbulence.
A stack of drinking straws can be used to make the flow laminar - simply jam enough in the pipe end to hold themselves in place, with a couple of layers of disks of green pan scourer at the upstream end to further damp any turbulence + catch any debris before it can block any of the straws. The inlet fitting should either be baffled or be at right angles (like the gauge) so its jet doesn't directly impinge on the face of the laminar flow stack.
The guard electrodes should probably be re-made out of strips of stainless shim formed into a slightly oversized ring so they lie flat against the pipe interior to minimise turbulence. Bring a bent tag out through the pipe wall to connect to them. Reinforce the pipe at that point by gluing a split ring of pipe to the exterior to get a double thickness and tap the hole for the tag so the sealing caulk has a good grip on the pipe. Connect to the electrode by punching a hole in the tab and bolting it to a small ring terminal, glued in place with more caulk for strain relief.
The potential electrodes should similarly be made of stainless shim. They should each occupy 1/6 of the pipe circumference and 1/2 of the magnetic field length to maximise the area which will minimise the contact resistance while avoiding excessive eddy currents in them. They will need at least two lugs each to secure them flush against the wall.
If you have problems getting lugs sealed, you could try stainless countersunk bolts, inserted through minimum clearance holes in the shim from the pipe interir outwards. Use slotted heads and a right-angle screwdriver for assembly. Drill the hole in the pipe oversize so the shim dimples into it and the head sits nearly flush. The glued on split ring of pipe should be drilled with exact size holes. Caulk and fit two nuts as a jam nut, then a third nut on top + a spring washer to retain the ring terminal.
If you can find a big enough scrap two pole shaded pole motor that you can pass the pipe through with the rotor removed, you could salvage the stator core and coil former. Cut the copper or aluminium shading rings off the pole pieces, and use the core to concentrate the field where you need it. Unless it was a low voltage motor, you will have to rewind the coil with thicker wire.
If you think it may be a conductivity issue, chuck a handful of baking soda in the tank and see if the results improve!