The design and packaging of simple, small, and low cost sensor heads, used for continuous liquid level measurement using uniformly thinned (etched) optical fiber Bragg grating (FBG) are proposed. The sensor system consists of only an FBG and a simple detection system. The sensitivity of sensor is found to be 23 pm/cm of water column pressure. A linear optical fiber edge filter is designed and developed for the conversion of Bragg wavelength shift to its equivalent intensity. The result shows that relative power measured by a photo detector is linearly proportional to the liquid level. The obtained sensitivity of the sensor is nearly −15 mV/cm .