Fiat / Hesston 70-66. What is this part that is leaking?

We have a mid ‘80s 70-66 Hesston diesel tractor that is leaking fuel from this gizmo on the bottom. It looks like an accumulator or filter housing of some sort, but I am not sure what to call it. Any ideas?
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It's a switch (or sensor) that detects water in the filter can and turns on a light on the dash somewhere. It probably hasn't worked for years. It's probably a straight thread, metric I would assume, like 12 or 14mm. I would remove it, check the thread size and replace it with a plug.
 
It's a switch (or sensor) that detects water in the filter can and turns on a light on the dash somewhere. It probably hasn't worked for years. It's probably a straight thread, metric I would assume, like 12 or 14mm. I would remove it, check the thread size and replace it with a plug.
You’re probably right on it not working properly. Is it also some sort of water separator ?
 

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