A liquid separator for separating water from a mixture of water and fuel includes a flow dispersion member which serves to control the flow of the mixture into, through, and out of the liquid separator. The flow dispersion member is placed between a flow inlet channel and a separation chamber and includes a plurality of flow paths that significantly reduces turbulence into and through a separation chamber of the liquid separator thereby improving the separation of the water from the mixture. Further improvement of the separation is provided by the unique arrangement of an inlet port so as to induce a circulatory motion to the incoming mixture and thereby separate some water by centrifugal action.