Non-invasive assessment of tissue water content is clinically relevant for edema detection, fluid management, and monitoring of local inflammation. In the short-wave infrared (SWIR), water exhibits strong absorption near 1450 nm with a secondary band near 1650 nm, enabling hydration-sensitive reflectance measurements. However, many SWIR systems rely on spectrometers or high-power broadband sources, limiting translation to compact or wearable platforms. We present a compact SWIR diffuse-reflectance probe built from small-form-factor components using four discrete LEDs (1450 nm and 1650 nm) and a single photodetector to acquire spatially resolved measurements at two source–detector separations (4.5 mm and 7 mm). Probe-geometry-matched Monte Carlo simulations were used to generate lookup tables relating reduced scattering to same-wavelength spatial ratios. 11 A diffusion-based forward model was then used to perform a calibration-anchored water-fraction consistency analysis. Eight gelatin–Intralipid phantoms spanning two scattering conditions and formulation-defined water fractions were evaluated. Spatial-ratio signatures were repeatable and monotonic with nominal water fraction, yielding a mean absolute percent error of 1.55% and a maximum absolute percent error of 3.33% under absorption-consistent conditions. These results demonstrate the feasibility of compact SWIR ratio sensing for controlled hydration changes in tissue-mimicking phantoms and provide a modeling framework for future extension to unknown or in vivo samples.