diff --git a/homeassistant/components/p1_monitor/__init__.py b/homeassistant/components/p1_monitor/__init__.py
index 03055013345..b157f3e8116 100644
--- a/homeassistant/components/p1_monitor/__init__.py
+++ b/homeassistant/components/p1_monitor/__init__.py
@@ -3,7 +3,14 @@ from __future__ import annotations
 
 from typing import TypedDict
 
-from p1monitor import P1Monitor, Phases, Settings, SmartMeter
+from p1monitor import (
+    P1Monitor,
+    P1MonitorNoDataError,
+    Phases,
+    Settings,
+    SmartMeter,
+    WaterMeter,
+)
 
 from homeassistant.config_entries import ConfigEntry
 from homeassistant.const import CONF_HOST, Platform
@@ -19,6 +26,7 @@ from .const import (
     SERVICE_PHASES,
     SERVICE_SETTINGS,
     SERVICE_SMARTMETER,
+    SERVICE_WATERMETER,
 )
 
 PLATFORMS = [Platform.SENSOR]
@@ -55,12 +63,14 @@ class P1MonitorData(TypedDict):
     smartmeter: SmartMeter
     phases: Phases
     settings: Settings
+    watermeter: WaterMeter | None
 
 
 class P1MonitorDataUpdateCoordinator(DataUpdateCoordinator[P1MonitorData]):
     """Class to manage fetching P1 Monitor data from single endpoint."""
 
     config_entry: ConfigEntry
+    has_water_meter: bool | None = None
 
     def __init__(
         self,
@@ -84,6 +94,16 @@ class P1MonitorDataUpdateCoordinator(DataUpdateCoordinator[P1MonitorData]):
             SERVICE_SMARTMETER: await self.p1monitor.smartmeter(),
             SERVICE_PHASES: await self.p1monitor.phases(),
             SERVICE_SETTINGS: await self.p1monitor.settings(),
+            SERVICE_WATERMETER: None,
         }
 
+        if self.has_water_meter or self.has_water_meter is None:
+            try:
+                data[SERVICE_WATERMETER] = await self.p1monitor.watermeter()
+                self.has_water_meter = True
+            except P1MonitorNoDataError:
+                LOGGER.debug("No watermeter data received from P1 Monitor")
+                if self.has_water_meter is None:
+                    self.has_water_meter = False
+
         return data
diff --git a/homeassistant/components/p1_monitor/const.py b/homeassistant/components/p1_monitor/const.py
index d72927a80f6..045301d38c4 100644
--- a/homeassistant/components/p1_monitor/const.py
+++ b/homeassistant/components/p1_monitor/const.py
@@ -10,11 +10,6 @@ LOGGER = logging.getLogger(__package__)
 SCAN_INTERVAL = timedelta(seconds=5)
 
 SERVICE_SMARTMETER: Final = "smartmeter"
+SERVICE_WATERMETER: Final = "watermeter"
 SERVICE_PHASES: Final = "phases"
 SERVICE_SETTINGS: Final = "settings"
-
-SERVICES: dict[str, str] = {
-    SERVICE_SMARTMETER: "SmartMeter",
-    SERVICE_PHASES: "Phases",
-    SERVICE_SETTINGS: "Settings",
-}
diff --git a/homeassistant/components/p1_monitor/diagnostics.py b/homeassistant/components/p1_monitor/diagnostics.py
index b99cc7b86e1..29f48d47cd9 100644
--- a/homeassistant/components/p1_monitor/diagnostics.py
+++ b/homeassistant/components/p1_monitor/diagnostics.py
@@ -10,7 +10,13 @@ from homeassistant.const import CONF_HOST
 from homeassistant.core import HomeAssistant
 
 from . import P1MonitorDataUpdateCoordinator
-from .const import DOMAIN, SERVICE_PHASES, SERVICE_SETTINGS, SERVICE_SMARTMETER
+from .const import (
+    DOMAIN,
+    SERVICE_PHASES,
+    SERVICE_SETTINGS,
+    SERVICE_SMARTMETER,
+    SERVICE_WATERMETER,
+)
 
 TO_REDACT = {
     CONF_HOST,
@@ -23,7 +29,7 @@ async def async_get_config_entry_diagnostics(
     """Return diagnostics for a config entry."""
     coordinator: P1MonitorDataUpdateCoordinator = hass.data[DOMAIN][entry.entry_id]
 
-    return {
+    data = {
         "entry": {
             "title": entry.title,
             "data": async_redact_data(entry.data, TO_REDACT),
@@ -34,3 +40,8 @@ async def async_get_config_entry_diagnostics(
             "settings": asdict(coordinator.data[SERVICE_SETTINGS]),
         },
     }
+
+    if coordinator.has_water_meter:
+        data["data"]["watermeter"] = asdict(coordinator.data[SERVICE_WATERMETER])
+
+    return data
diff --git a/homeassistant/components/p1_monitor/manifest.json b/homeassistant/components/p1_monitor/manifest.json
index c94893f61fd..626cff15dfa 100644
--- a/homeassistant/components/p1_monitor/manifest.json
+++ b/homeassistant/components/p1_monitor/manifest.json
@@ -3,7 +3,7 @@
   "name": "P1 Monitor",
   "config_flow": true,
   "documentation": "https://www.home-assistant.io/integrations/p1_monitor",
-  "requirements": ["p1monitor==1.0.1"],
+  "requirements": ["p1monitor==2.1.0"],
   "codeowners": ["@klaasnicolaas"],
   "quality_scale": "platinum",
   "iot_class": "local_polling",
diff --git a/homeassistant/components/p1_monitor/sensor.py b/homeassistant/components/p1_monitor/sensor.py
index 57f6b0ad99c..757bf249ca1 100644
--- a/homeassistant/components/p1_monitor/sensor.py
+++ b/homeassistant/components/p1_monitor/sensor.py
@@ -19,6 +19,7 @@ from homeassistant.const import (
     ENERGY_KILO_WATT_HOUR,
     POWER_WATT,
     VOLUME_CUBIC_METERS,
+    VOLUME_LITERS,
 )
 from homeassistant.core import HomeAssistant
 from homeassistant.helpers.device_registry import DeviceEntryType
@@ -33,206 +34,256 @@ from .const import (
     SERVICE_PHASES,
     SERVICE_SETTINGS,
     SERVICE_SMARTMETER,
-    SERVICES,
+    SERVICE_WATERMETER,
 )
 
-SENSORS: dict[
-    Literal["smartmeter", "phases", "settings"], tuple[SensorEntityDescription, ...]
-] = {
-    SERVICE_SMARTMETER: (
-        SensorEntityDescription(
-            key="gas_consumption",
-            name="Gas Consumption",
-            entity_registry_enabled_default=False,
-            native_unit_of_measurement=VOLUME_CUBIC_METERS,
-            device_class=SensorDeviceClass.GAS,
-            state_class=SensorStateClass.TOTAL_INCREASING,
-        ),
-        SensorEntityDescription(
-            key="power_consumption",
-            name="Power Consumption",
-            native_unit_of_measurement=POWER_WATT,
-            device_class=SensorDeviceClass.POWER,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="energy_consumption_high",
-            name="Energy Consumption - High Tariff",
-            native_unit_of_measurement=ENERGY_KILO_WATT_HOUR,
-            device_class=SensorDeviceClass.ENERGY,
-            state_class=SensorStateClass.TOTAL_INCREASING,
-        ),
-        SensorEntityDescription(
-            key="energy_consumption_low",
-            name="Energy Consumption - Low Tariff",
-            native_unit_of_measurement=ENERGY_KILO_WATT_HOUR,
-            device_class=SensorDeviceClass.ENERGY,
-            state_class=SensorStateClass.TOTAL_INCREASING,
-        ),
-        SensorEntityDescription(
-            key="power_production",
-            name="Power Production",
-            native_unit_of_measurement=POWER_WATT,
-            device_class=SensorDeviceClass.POWER,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="energy_production_high",
-            name="Energy Production - High Tariff",
-            native_unit_of_measurement=ENERGY_KILO_WATT_HOUR,
-            device_class=SensorDeviceClass.ENERGY,
-            state_class=SensorStateClass.TOTAL_INCREASING,
-        ),
-        SensorEntityDescription(
-            key="energy_production_low",
-            name="Energy Production - Low Tariff",
-            native_unit_of_measurement=ENERGY_KILO_WATT_HOUR,
-            device_class=SensorDeviceClass.ENERGY,
-            state_class=SensorStateClass.TOTAL_INCREASING,
-        ),
-        SensorEntityDescription(
-            key="energy_tariff_period",
-            name="Energy Tariff Period",
-            icon="mdi:calendar-clock",
-        ),
+SENSORS_SMARTMETER: tuple[SensorEntityDescription, ...] = (
+    SensorEntityDescription(
+        key="gas_consumption",
+        name="Gas Consumption",
+        entity_registry_enabled_default=False,
+        native_unit_of_measurement=VOLUME_CUBIC_METERS,
+        device_class=SensorDeviceClass.GAS,
+        state_class=SensorStateClass.TOTAL_INCREASING,
     ),
-    SERVICE_PHASES: (
-        SensorEntityDescription(
-            key="voltage_phase_l1",
-            name="Voltage Phase L1",
-            native_unit_of_measurement=ELECTRIC_POTENTIAL_VOLT,
-            device_class=SensorDeviceClass.VOLTAGE,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="voltage_phase_l2",
-            name="Voltage Phase L2",
-            native_unit_of_measurement=ELECTRIC_POTENTIAL_VOLT,
-            device_class=SensorDeviceClass.VOLTAGE,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="voltage_phase_l3",
-            name="Voltage Phase L3",
-            native_unit_of_measurement=ELECTRIC_POTENTIAL_VOLT,
-            device_class=SensorDeviceClass.VOLTAGE,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="current_phase_l1",
-            name="Current Phase L1",
-            native_unit_of_measurement=ELECTRIC_CURRENT_AMPERE,
-            device_class=SensorDeviceClass.CURRENT,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="current_phase_l2",
-            name="Current Phase L2",
-            native_unit_of_measurement=ELECTRIC_CURRENT_AMPERE,
-            device_class=SensorDeviceClass.CURRENT,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="current_phase_l3",
-            name="Current Phase L3",
-            native_unit_of_measurement=ELECTRIC_CURRENT_AMPERE,
-            device_class=SensorDeviceClass.CURRENT,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="power_consumed_phase_l1",
-            name="Power Consumed Phase L1",
-            native_unit_of_measurement=POWER_WATT,
-            device_class=SensorDeviceClass.POWER,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="power_consumed_phase_l2",
-            name="Power Consumed Phase L2",
-            native_unit_of_measurement=POWER_WATT,
-            device_class=SensorDeviceClass.POWER,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="power_consumed_phase_l3",
-            name="Power Consumed Phase L3",
-            native_unit_of_measurement=POWER_WATT,
-            device_class=SensorDeviceClass.POWER,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="power_produced_phase_l1",
-            name="Power Produced Phase L1",
-            native_unit_of_measurement=POWER_WATT,
-            device_class=SensorDeviceClass.POWER,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="power_produced_phase_l2",
-            name="Power Produced Phase L2",
-            native_unit_of_measurement=POWER_WATT,
-            device_class=SensorDeviceClass.POWER,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
-        SensorEntityDescription(
-            key="power_produced_phase_l3",
-            name="Power Produced Phase L3",
-            native_unit_of_measurement=POWER_WATT,
-            device_class=SensorDeviceClass.POWER,
-            state_class=SensorStateClass.MEASUREMENT,
-        ),
+    SensorEntityDescription(
+        key="power_consumption",
+        name="Power Consumption",
+        native_unit_of_measurement=POWER_WATT,
+        device_class=SensorDeviceClass.POWER,
+        state_class=SensorStateClass.MEASUREMENT,
     ),
-    SERVICE_SETTINGS: (
-        SensorEntityDescription(
-            key="gas_consumption_price",
-            name="Gas Consumption Price",
-            entity_registry_enabled_default=False,
-            state_class=SensorStateClass.MEASUREMENT,
-            native_unit_of_measurement=f"{CURRENCY_EURO}/{VOLUME_CUBIC_METERS}",
-        ),
-        SensorEntityDescription(
-            key="energy_consumption_price_low",
-            name="Energy Consumption Price - Low",
-            state_class=SensorStateClass.MEASUREMENT,
-            native_unit_of_measurement=f"{CURRENCY_EURO}/{ENERGY_KILO_WATT_HOUR}",
-        ),
-        SensorEntityDescription(
-            key="energy_consumption_price_high",
-            name="Energy Consumption Price - High",
-            state_class=SensorStateClass.MEASUREMENT,
-            native_unit_of_measurement=f"{CURRENCY_EURO}/{ENERGY_KILO_WATT_HOUR}",
-        ),
-        SensorEntityDescription(
-            key="energy_production_price_low",
-            name="Energy Production Price - Low",
-            state_class=SensorStateClass.MEASUREMENT,
-            native_unit_of_measurement=f"{CURRENCY_EURO}/{ENERGY_KILO_WATT_HOUR}",
-        ),
-        SensorEntityDescription(
-            key="energy_production_price_high",
-            name="Energy Production Price - High",
-            state_class=SensorStateClass.MEASUREMENT,
-            native_unit_of_measurement=f"{CURRENCY_EURO}/{ENERGY_KILO_WATT_HOUR}",
-        ),
+    SensorEntityDescription(
+        key="energy_consumption_high",
+        name="Energy Consumption - High Tariff",
+        native_unit_of_measurement=ENERGY_KILO_WATT_HOUR,
+        device_class=SensorDeviceClass.ENERGY,
+        state_class=SensorStateClass.TOTAL_INCREASING,
     ),
-}
+    SensorEntityDescription(
+        key="energy_consumption_low",
+        name="Energy Consumption - Low Tariff",
+        native_unit_of_measurement=ENERGY_KILO_WATT_HOUR,
+        device_class=SensorDeviceClass.ENERGY,
+        state_class=SensorStateClass.TOTAL_INCREASING,
+    ),
+    SensorEntityDescription(
+        key="power_production",
+        name="Power Production",
+        native_unit_of_measurement=POWER_WATT,
+        device_class=SensorDeviceClass.POWER,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+    SensorEntityDescription(
+        key="energy_production_high",
+        name="Energy Production - High Tariff",
+        native_unit_of_measurement=ENERGY_KILO_WATT_HOUR,
+        device_class=SensorDeviceClass.ENERGY,
+        state_class=SensorStateClass.TOTAL_INCREASING,
+    ),
+    SensorEntityDescription(
+        key="energy_production_low",
+        name="Energy Production - Low Tariff",
+        native_unit_of_measurement=ENERGY_KILO_WATT_HOUR,
+        device_class=SensorDeviceClass.ENERGY,
+        state_class=SensorStateClass.TOTAL_INCREASING,
+    ),
+    SensorEntityDescription(
+        key="energy_tariff_period",
+        name="Energy Tariff Period",
+        icon="mdi:calendar-clock",
+    ),
+)
+
+SENSORS_PHASES: tuple[SensorEntityDescription, ...] = (
+    SensorEntityDescription(
+        key="voltage_phase_l1",
+        name="Voltage Phase L1",
+        native_unit_of_measurement=ELECTRIC_POTENTIAL_VOLT,
+        device_class=SensorDeviceClass.VOLTAGE,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+    SensorEntityDescription(
+        key="voltage_phase_l2",
+        name="Voltage Phase L2",
+        native_unit_of_measurement=ELECTRIC_POTENTIAL_VOLT,
+        device_class=SensorDeviceClass.VOLTAGE,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+    SensorEntityDescription(
+        key="voltage_phase_l3",
+        name="Voltage Phase L3",
+        native_unit_of_measurement=ELECTRIC_POTENTIAL_VOLT,
+        device_class=SensorDeviceClass.VOLTAGE,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+    SensorEntityDescription(
+        key="current_phase_l1",
+        name="Current Phase L1",
+        native_unit_of_measurement=ELECTRIC_CURRENT_AMPERE,
+        device_class=SensorDeviceClass.CURRENT,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+    SensorEntityDescription(
+        key="current_phase_l2",
+        name="Current Phase L2",
+        native_unit_of_measurement=ELECTRIC_CURRENT_AMPERE,
+        device_class=SensorDeviceClass.CURRENT,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+    SensorEntityDescription(
+        key="current_phase_l3",
+        name="Current Phase L3",
+        native_unit_of_measurement=ELECTRIC_CURRENT_AMPERE,
+        device_class=SensorDeviceClass.CURRENT,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+    SensorEntityDescription(
+        key="power_consumed_phase_l1",
+        name="Power Consumed Phase L1",
+        native_unit_of_measurement=POWER_WATT,
+        device_class=SensorDeviceClass.POWER,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+    SensorEntityDescription(
+        key="power_consumed_phase_l2",
+        name="Power Consumed Phase L2",
+        native_unit_of_measurement=POWER_WATT,
+        device_class=SensorDeviceClass.POWER,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+    SensorEntityDescription(
+        key="power_consumed_phase_l3",
+        name="Power Consumed Phase L3",
+        native_unit_of_measurement=POWER_WATT,
+        device_class=SensorDeviceClass.POWER,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+    SensorEntityDescription(
+        key="power_produced_phase_l1",
+        name="Power Produced Phase L1",
+        native_unit_of_measurement=POWER_WATT,
+        device_class=SensorDeviceClass.POWER,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+    SensorEntityDescription(
+        key="power_produced_phase_l2",
+        name="Power Produced Phase L2",
+        native_unit_of_measurement=POWER_WATT,
+        device_class=SensorDeviceClass.POWER,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+    SensorEntityDescription(
+        key="power_produced_phase_l3",
+        name="Power Produced Phase L3",
+        native_unit_of_measurement=POWER_WATT,
+        device_class=SensorDeviceClass.POWER,
+        state_class=SensorStateClass.MEASUREMENT,
+    ),
+)
+
+SENSORS_SETTINGS: tuple[SensorEntityDescription, ...] = (
+    SensorEntityDescription(
+        key="gas_consumption_price",
+        name="Gas Consumption Price",
+        entity_registry_enabled_default=False,
+        state_class=SensorStateClass.MEASUREMENT,
+        native_unit_of_measurement=f"{CURRENCY_EURO}/{VOLUME_CUBIC_METERS}",
+    ),
+    SensorEntityDescription(
+        key="energy_consumption_price_low",
+        name="Energy Consumption Price - Low",
+        state_class=SensorStateClass.MEASUREMENT,
+        native_unit_of_measurement=f"{CURRENCY_EURO}/{ENERGY_KILO_WATT_HOUR}",
+    ),
+    SensorEntityDescription(
+        key="energy_consumption_price_high",
+        name="Energy Consumption Price - High",
+        state_class=SensorStateClass.MEASUREMENT,
+        native_unit_of_measurement=f"{CURRENCY_EURO}/{ENERGY_KILO_WATT_HOUR}",
+    ),
+    SensorEntityDescription(
+        key="energy_production_price_low",
+        name="Energy Production Price - Low",
+        state_class=SensorStateClass.MEASUREMENT,
+        native_unit_of_measurement=f"{CURRENCY_EURO}/{ENERGY_KILO_WATT_HOUR}",
+    ),
+    SensorEntityDescription(
+        key="energy_production_price_high",
+        name="Energy Production Price - High",
+        state_class=SensorStateClass.MEASUREMENT,
+        native_unit_of_measurement=f"{CURRENCY_EURO}/{ENERGY_KILO_WATT_HOUR}",
+    ),
+)
+
+SENSORS_WATERMETER: tuple[SensorEntityDescription, ...] = (
+    SensorEntityDescription(
+        key="consumption_day",
+        name="Consumption Day",
+        state_class=SensorStateClass.TOTAL_INCREASING,
+        native_unit_of_measurement=VOLUME_LITERS,
+    ),
+    SensorEntityDescription(
+        key="consumption_total",
+        name="Consumption Total",
+        state_class=SensorStateClass.TOTAL_INCREASING,
+        native_unit_of_measurement=VOLUME_CUBIC_METERS,
+    ),
+    SensorEntityDescription(
+        key="pulse_count",
+        name="Pulse Count",
+    ),
+)
 
 
 async def async_setup_entry(
     hass: HomeAssistant, entry: ConfigEntry, async_add_entities: AddEntitiesCallback
 ) -> None:
     """Set up P1 Monitor Sensors based on a config entry."""
-    async_add_entities(
+    coordinator: P1MonitorDataUpdateCoordinator = hass.data[DOMAIN][entry.entry_id]
+    entities: list[P1MonitorSensorEntity] = []
+    entities.extend(
         P1MonitorSensorEntity(
-            coordinator=hass.data[DOMAIN][entry.entry_id],
+            coordinator=coordinator,
             description=description,
-            service_key=service_key,
-            name=entry.title,
-            service=SERVICES[service_key],
+            name="SmartMeter",
+            service_key="smartmeter",
+            service=SERVICE_SMARTMETER,
         )
-        for service_key, service_sensors in SENSORS.items()
-        for description in service_sensors
+        for description in SENSORS_SMARTMETER
     )
+    entities.extend(
+        P1MonitorSensorEntity(
+            coordinator=coordinator,
+            description=description,
+            name="Phases",
+            service_key="phases",
+            service=SERVICE_PHASES,
+        )
+        for description in SENSORS_PHASES
+    )
+    entities.extend(
+        P1MonitorSensorEntity(
+            coordinator=coordinator,
+            description=description,
+            name="Settings",
+            service_key="settings",
+            service=SERVICE_SETTINGS,
+        )
+        for description in SENSORS_SETTINGS
+    )
+    if coordinator.has_water_meter:
+        entities.extend(
+            P1MonitorSensorEntity(
+                coordinator=coordinator,
+                description=description,
+                name="WaterMeter",
+                service_key="watermeter",
+                service=SERVICE_WATERMETER,
+            )
+            for description in SENSORS_WATERMETER
+        )
+    async_add_entities(entities)
 
 
 class P1MonitorSensorEntity(
@@ -245,7 +296,7 @@ class P1MonitorSensorEntity(
         *,
         coordinator: P1MonitorDataUpdateCoordinator,
         description: SensorEntityDescription,
-        service_key: Literal["smartmeter", "phases", "settings"],
+        service_key: Literal["smartmeter", "watermeter", "phases", "settings"],
         name: str,
         service: str,
     ) -> None:
@@ -253,7 +304,7 @@ class P1MonitorSensorEntity(
         super().__init__(coordinator=coordinator)
         self._service_key = service_key
 
-        self.entity_id = f"{SENSOR_DOMAIN}.{name}_{description.key}"
+        self.entity_id = f"{SENSOR_DOMAIN}.{service}_{description.key}"
         self.entity_description = description
         self._attr_unique_id = (
             f"{coordinator.config_entry.entry_id}_{service_key}_{description.key}"
@@ -266,7 +317,7 @@ class P1MonitorSensorEntity(
             },
             configuration_url=f"http://{coordinator.config_entry.data[CONF_HOST]}",
             manufacturer="P1 Monitor",
-            name=service,
+            name=name,
         )
 
     @property
diff --git a/requirements_all.txt b/requirements_all.txt
index 2a25c6da9df..322d67a94df 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -1206,7 +1206,7 @@ orvibo==1.1.1
 ovoenergy==1.2.0
 
 # homeassistant.components.p1_monitor
-p1monitor==1.0.1
+p1monitor==2.1.0
 
 # homeassistant.components.mqtt
 # homeassistant.components.shiftr
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index d9cfea5b10b..8c67a756157 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -842,7 +842,7 @@ openerz-api==0.1.0
 ovoenergy==1.2.0
 
 # homeassistant.components.p1_monitor
-p1monitor==1.0.1
+p1monitor==2.1.0
 
 # homeassistant.components.mqtt
 # homeassistant.components.shiftr
diff --git a/tests/components/p1_monitor/conftest.py b/tests/components/p1_monitor/conftest.py
index dbdf572c6de..5f6713f5228 100644
--- a/tests/components/p1_monitor/conftest.py
+++ b/tests/components/p1_monitor/conftest.py
@@ -2,7 +2,7 @@
 import json
 from unittest.mock import AsyncMock, MagicMock, patch
 
-from p1monitor import Phases, Settings, SmartMeter
+from p1monitor import Phases, Settings, SmartMeter, WaterMeter
 import pytest
 
 from homeassistant.components.p1_monitor.const import DOMAIN
@@ -43,7 +43,12 @@ def mock_p1monitor():
                 json.loads(load_fixture("p1_monitor/settings.json"))
             )
         )
-        yield p1monitor_mock
+        client.watermeter = AsyncMock(
+            return_value=WaterMeter.from_dict(
+                json.loads(load_fixture("p1_monitor/watermeter.json"))
+            )
+        )
+        yield client
 
 
 @pytest.fixture
diff --git a/tests/components/p1_monitor/fixtures/watermeter.json b/tests/components/p1_monitor/fixtures/watermeter.json
new file mode 100644
index 00000000000..f69a4edcf88
--- /dev/null
+++ b/tests/components/p1_monitor/fixtures/watermeter.json
@@ -0,0 +1,10 @@
+[
+  {
+    "TIMEPERIOD_ID": 13,
+    "TIMESTAMP_UTC": 1656194400,
+    "TIMESTAMP_lOCAL": "2022-06-26 00:00:00",
+    "WATERMETER_CONSUMPTION_LITER": 112.0,
+    "WATERMETER_CONSUMPTION_TOTAL_M3": 1696.14,
+    "WATERMETER_PULS_COUNT": 112.0
+  }
+]
diff --git a/tests/components/p1_monitor/test_config_flow.py b/tests/components/p1_monitor/test_config_flow.py
index 42a41789a92..13541e782b4 100644
--- a/tests/components/p1_monitor/test_config_flow.py
+++ b/tests/components/p1_monitor/test_config_flow.py
@@ -27,17 +27,12 @@ async def test_full_user_flow(hass: HomeAssistant) -> None:
     ) as mock_setup_entry:
         result2 = await hass.config_entries.flow.async_configure(
             result["flow_id"],
-            user_input={
-                CONF_NAME: "Name",
-                CONF_HOST: "example.com",
-            },
+            user_input={CONF_NAME: "Name", CONF_HOST: "example.com"},
         )
 
     assert result2.get("type") == FlowResultType.CREATE_ENTRY
     assert result2.get("title") == "Name"
-    assert result2.get("data") == {
-        CONF_HOST: "example.com",
-    }
+    assert result2.get("data") == {CONF_HOST: "example.com"}
 
     assert len(mock_setup_entry.mock_calls) == 1
     assert len(mock_p1monitor.mock_calls) == 1
@@ -52,10 +47,7 @@ async def test_api_error(hass: HomeAssistant) -> None:
         result = await hass.config_entries.flow.async_init(
             DOMAIN,
             context={"source": SOURCE_USER},
-            data={
-                CONF_NAME: "Name",
-                CONF_HOST: "example.com",
-            },
+            data={CONF_NAME: "Name", CONF_HOST: "example.com"},
         )
 
     assert result.get("type") == FlowResultType.FORM
diff --git a/tests/components/p1_monitor/test_diagnostics.py b/tests/components/p1_monitor/test_diagnostics.py
index 6b97107c353..1ab9da7adc8 100644
--- a/tests/components/p1_monitor/test_diagnostics.py
+++ b/tests/components/p1_monitor/test_diagnostics.py
@@ -55,5 +55,10 @@ async def test_diagnostics(
                 "energy_production_price_high": "0.20522",
                 "energy_production_price_low": "0.20522",
             },
+            "watermeter": {
+                "consumption_day": 112.0,
+                "consumption_total": 1696.14,
+                "pulse_count": 112.0,
+            },
         },
     }
diff --git a/tests/components/p1_monitor/test_init.py b/tests/components/p1_monitor/test_init.py
index 1cf9cf21966..d7817faecdf 100644
--- a/tests/components/p1_monitor/test_init.py
+++ b/tests/components/p1_monitor/test_init.py
@@ -28,7 +28,7 @@ async def test_load_unload_config_entry(
 
 
 @patch(
-    "homeassistant.components.p1_monitor.P1Monitor.request",
+    "homeassistant.components.p1_monitor.P1Monitor._request",
     side_effect=P1MonitorConnectionError,
 )
 async def test_config_entry_not_ready(
diff --git a/tests/components/p1_monitor/test_sensor.py b/tests/components/p1_monitor/test_sensor.py
index faaafca5ab8..fe9560c9cb6 100644
--- a/tests/components/p1_monitor/test_sensor.py
+++ b/tests/components/p1_monitor/test_sensor.py
@@ -1,4 +1,7 @@
 """Tests for the sensors provided by the P1 Monitor integration."""
+from unittest.mock import MagicMock
+
+from p1monitor import P1MonitorNoDataError
 import pytest
 
 from homeassistant.components.p1_monitor.const import DOMAIN
@@ -17,6 +20,7 @@ from homeassistant.const import (
     ELECTRIC_POTENTIAL_VOLT,
     ENERGY_KILO_WATT_HOUR,
     POWER_WATT,
+    VOLUME_LITERS,
 )
 from homeassistant.core import HomeAssistant
 from homeassistant.helpers import device_registry as dr, entity_registry as er
@@ -33,8 +37,8 @@ async def test_smartmeter(
     entity_registry = er.async_get(hass)
     device_registry = dr.async_get(hass)
 
-    state = hass.states.get("sensor.monitor_power_consumption")
-    entry = entity_registry.async_get("sensor.monitor_power_consumption")
+    state = hass.states.get("sensor.smartmeter_power_consumption")
+    entry = entity_registry.async_get("sensor.smartmeter_power_consumption")
     assert entry
     assert state
     assert entry.unique_id == f"{entry_id}_smartmeter_power_consumption"
@@ -45,8 +49,8 @@ async def test_smartmeter(
     assert state.attributes.get(ATTR_DEVICE_CLASS) == SensorDeviceClass.POWER
     assert ATTR_ICON not in state.attributes
 
-    state = hass.states.get("sensor.monitor_energy_consumption_high")
-    entry = entity_registry.async_get("sensor.monitor_energy_consumption_high")
+    state = hass.states.get("sensor.smartmeter_energy_consumption_high")
+    entry = entity_registry.async_get("sensor.smartmeter_energy_consumption_high")
     assert entry
     assert state
     assert entry.unique_id == f"{entry_id}_smartmeter_energy_consumption_high"
@@ -59,8 +63,8 @@ async def test_smartmeter(
     assert state.attributes.get(ATTR_DEVICE_CLASS) == SensorDeviceClass.ENERGY
     assert ATTR_ICON not in state.attributes
 
-    state = hass.states.get("sensor.monitor_energy_tariff_period")
-    entry = entity_registry.async_get("sensor.monitor_energy_tariff_period")
+    state = hass.states.get("sensor.smartmeter_energy_tariff_period")
+    entry = entity_registry.async_get("sensor.smartmeter_energy_tariff_period")
     assert entry
     assert state
     assert entry.unique_id == f"{entry_id}_smartmeter_energy_tariff_period"
@@ -90,8 +94,8 @@ async def test_phases(
     entity_registry = er.async_get(hass)
     device_registry = dr.async_get(hass)
 
-    state = hass.states.get("sensor.monitor_voltage_phase_l1")
-    entry = entity_registry.async_get("sensor.monitor_voltage_phase_l1")
+    state = hass.states.get("sensor.phases_voltage_phase_l1")
+    entry = entity_registry.async_get("sensor.phases_voltage_phase_l1")
     assert entry
     assert state
     assert entry.unique_id == f"{entry_id}_phases_voltage_phase_l1"
@@ -102,8 +106,8 @@ async def test_phases(
     assert state.attributes.get(ATTR_DEVICE_CLASS) == SensorDeviceClass.VOLTAGE
     assert ATTR_ICON not in state.attributes
 
-    state = hass.states.get("sensor.monitor_current_phase_l1")
-    entry = entity_registry.async_get("sensor.monitor_current_phase_l1")
+    state = hass.states.get("sensor.phases_current_phase_l1")
+    entry = entity_registry.async_get("sensor.phases_current_phase_l1")
     assert entry
     assert state
     assert entry.unique_id == f"{entry_id}_phases_current_phase_l1"
@@ -114,8 +118,8 @@ async def test_phases(
     assert state.attributes.get(ATTR_DEVICE_CLASS) == SensorDeviceClass.CURRENT
     assert ATTR_ICON not in state.attributes
 
-    state = hass.states.get("sensor.monitor_power_consumed_phase_l1")
-    entry = entity_registry.async_get("sensor.monitor_power_consumed_phase_l1")
+    state = hass.states.get("sensor.phases_power_consumed_phase_l1")
+    entry = entity_registry.async_get("sensor.phases_power_consumed_phase_l1")
     assert entry
     assert state
     assert entry.unique_id == f"{entry_id}_phases_power_consumed_phase_l1"
@@ -146,8 +150,8 @@ async def test_settings(
     entity_registry = er.async_get(hass)
     device_registry = dr.async_get(hass)
 
-    state = hass.states.get("sensor.monitor_energy_consumption_price_low")
-    entry = entity_registry.async_get("sensor.monitor_energy_consumption_price_low")
+    state = hass.states.get("sensor.settings_energy_consumption_price_low")
+    entry = entity_registry.async_get("sensor.settings_energy_consumption_price_low")
     assert entry
     assert state
     assert entry.unique_id == f"{entry_id}_settings_energy_consumption_price_low"
@@ -159,8 +163,8 @@ async def test_settings(
         == f"{CURRENCY_EURO}/{ENERGY_KILO_WATT_HOUR}"
     )
 
-    state = hass.states.get("sensor.monitor_energy_production_price_low")
-    entry = entity_registry.async_get("sensor.monitor_energy_production_price_low")
+    state = hass.states.get("sensor.settings_energy_production_price_low")
+    entry = entity_registry.async_get("sensor.settings_energy_production_price_low")
     assert entry
     assert state
     assert entry.unique_id == f"{entry_id}_settings_energy_production_price_low"
@@ -183,9 +187,52 @@ async def test_settings(
     assert not device_entry.sw_version
 
 
+async def test_watermeter(
+    hass: HomeAssistant,
+    init_integration: MockConfigEntry,
+) -> None:
+    """Test the P1 Monitor - WaterMeter sensors."""
+    entry_id = init_integration.entry_id
+    entity_registry = er.async_get(hass)
+    device_registry = dr.async_get(hass)
+    state = hass.states.get("sensor.watermeter_consumption_day")
+    entry = entity_registry.async_get("sensor.watermeter_consumption_day")
+    assert entry
+    assert state
+    assert entry.unique_id == f"{entry_id}_watermeter_consumption_day"
+    assert state.state == "112.0"
+    assert state.attributes.get(ATTR_FRIENDLY_NAME) == "Consumption Day"
+    assert state.attributes.get(ATTR_STATE_CLASS) is SensorStateClass.TOTAL_INCREASING
+    assert state.attributes.get(ATTR_UNIT_OF_MEASUREMENT) == VOLUME_LITERS
+
+    assert entry.device_id
+    device_entry = device_registry.async_get(entry.device_id)
+    assert device_entry
+    assert device_entry.identifiers == {(DOMAIN, f"{entry_id}_watermeter")}
+    assert device_entry.manufacturer == "P1 Monitor"
+    assert device_entry.name == "WaterMeter"
+    assert device_entry.entry_type is dr.DeviceEntryType.SERVICE
+    assert not device_entry.model
+    assert not device_entry.sw_version
+
+
+async def test_no_watermeter(
+    hass: HomeAssistant, mock_p1monitor: MagicMock, mock_config_entry: MockConfigEntry
+) -> None:
+    """Test the P1 Monitor - Without WaterMeter sensors."""
+    mock_p1monitor.watermeter.side_effect = P1MonitorNoDataError
+    mock_config_entry.add_to_hass(hass)
+    await hass.config_entries.async_setup(mock_config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    assert not hass.states.get("sensor.watermeter_consumption_day")
+    assert not hass.states.get("sensor.consumption_total")
+    assert not hass.states.get("sensor.pulse_count")
+
+
 @pytest.mark.parametrize(
     "entity_id",
-    ("sensor.monitor_gas_consumption",),
+    ("sensor.smartmeter_gas_consumption",),
 )
 async def test_smartmeter_disabled_by_default(
     hass: HomeAssistant, init_integration: MockConfigEntry, entity_id: str