We studied the assimilation of high-resolution precipitable water vapor (PWV) data derived from a hyper-dense global navigation satellite system network around Uji city, Kyoto, Japan, which had a mean inter-station distance of about 1.7 km. We focused on a heavy rainfall event that occurred on August 13-14, 2012, around Uji city. We employed a local ensemble transform Kalman filter as the data assimilation method. The inhomogeneity of the observed PWV increased on a scale of less than 10 km in advance of the actual rainfall detected by the rain gauge. Zenith wet delay data observed by the Uji network showed that the characteristic length scale of water vapor distribution during the rainfall ranged from 1.9 to 3.5 km. It is suggested that the assimilation of PWV data with high horizontal resolution (a few km) improves the forecast accuracy. We conducted the assimilation experiment of high-resolution PWV data, using both small horizontal localization radii and a conventional horizontal localization radius. We repeated the sensitivity experiment, changing the mean horizontal spacing of the PWV data from 1.7 to 8.0 km. When the horizontal spacing of assimilated PWV data was decreased from 8.0 to 3.5 km, the accuracy of the simulated hourly rainfall amount worsened in the experiment that used the conventional localization radius for the assimilation of PWV. In contrast, the accuracy of hourly rainfall amounts improved when we applied small horizontal localization radii. In the experiment that used the small horizontal localization radii, the accuracy of the hourly rainfall amount was most improved when the horizontal resolution of the assimilated PWV data was 3.5 km. The optimum spatial resolution of PWV data was related to the characteristic length scale of water vapor variability.