This paper presents an ultrasonic method to measure small concentrations of water in lubricating oil. It uses an ultrasonic measurement cell composed by a piezoceramic emitter (5 and 10 MHz), and a large aperture PVDF receiver that eliminates diffraction effects. The propagation velocity, attenuation coefficient and density of several samples of water-in-oil emulsion were measured. The concentrations of water of the samples were in the range of 0 to 5% in volume, and the results showed that these low concentrations can be discriminated within a resolution of 0.2% in the studied range, using the measurement of the propagation velocity.