This sensor is used to measure water flow, in LPM (Liters Per Minute). It incorporates a Hall Effect Sensor. The UPM module defines an interrupt routine to be triggered on each low pulse, keeping count. This device requires a 10K pullup resistor for the signal line (yellow wire). There is a schematic diagram on the seeedstudio site (3/2015): http://www.seeedstudio.com/wiki/index.php?title=G1/2_Water_Flow_sensor
However, be careful in wiring this up - the schematic appears to have a bug in it: the lower left connection of the signal line (yellow) to Vcc (red) should not be there. The sensor may work with this connection, but probably not for very long.
while (shouldRun)
{
cout << "Millis: " << millis << " Flow Count: " << flowCount;
cout << " Flow Rate: " << fr << " LPM" << endl;
sleep(2);
}