How much water is too much?
A number of factors need to be considered when selecting water contamination targets, including the type of hydraulic system and reliability objectives for the equipment.
It's always wise to control water contamination at the lowest levels that can reasonably be achieved, ideally below the oil's saturation point at operating temperature.
Recommendations by bearing manufacturers are that less than 300 parts per million (<300ppm) should be achieved for optimum bearinng life.