Groundwater level monitoring is critical to protect and manage of groundwater resources. A properly designed and executed instrumentation can play important role to increase the quality and reliability of collected data and reducing total monitoring costs. The efficiency of the instrumentation is mainly depending on the accuracy and reliability of the installed sensors. This study presents, the testing and application of a cost-effective pressure sensor (0-689 kPa) range) for water level monitoring based on microelectromechanical system (MEMS) technology and Internet of things (IOT) concept. The sensor performance in term of accuracy, precision, repeatability, temperature was investigated in laboratory columns (with constant water level, increasing and decreasing water levels at various rates) and in-situ conditions in an observation bore (with natural groundwater level fluctuations). The results shows that the MEMS sensor capable of providing reliable and adequate monitoring scheme with an accuracy of 0.31% full scale (FS) (2.13 kPa).