We present a capacitive smart sensor based on printed circuit board (PCB) technology to measure the amount of water content in a paper pulp at the wet end of a paper machine. The developed sensor incorporates in the same PCB the signal processing circuits. It is a handheld portable device, and its output is sent to the reading equipment using a Bluetooth wireless connection, providing to the sensor’s operator ease of mobility around the wet end of a paper machine. The prototype was tested in a laboratory, using a wire mesh to emulate the end of a paper machine, and we were able to measure and easily detect when it reaches the water content in the range of 90% to 92%, as required in the paper fabrication process. Standard deviation of the capacitance measurements at various moisture levels is four orders of magnitude smaller than the mean. The smart sensor was tested in the 20°C to 40°C temperature range, in a paper pulp with a gravimetric water content of 91%. Since the variation of capacitance with temperature is practically linear, we propose a simple linear compensation equation to correct the observed sensitivity with the temperature. To keep the signal processing circuits small, low cost, simple, and robust, a novel direct interface sensor to microcontroller circuit technique was used to make the capacitive measurement, allowing for measuring small capacitance deviations without high-frequency oscillators. It was shown that it is possible to integrate the signal processing circuits in the top layer of the PCB interdigitated sensor without adding noise or degrading the performance of the capacitive sensor.