Insulation breakdown of water-cooled generator stator windings occurs frequently due to leakage of cooling water and absorption into the insulation material. Leakage and absorption problems of water-cooled stator windings are often found during regular preventive maintenance. To evaluate cooling water leakage and absorption, diagnostic tests were performed on two water-cooled turbine generators, which have been in service for 13 and 17 years, respectively. The test results of the measured electrical properties such as dissipation factor (tano), capacitance and AC leakage current for water-cooled generator stator windings with wet bars are reported in this paper.