The machining (cutting, grinding etc.) is conducted in manufacturing. Machining fluid (cutting oil, grinding fluid) that consists of oil, surface active agent, and extreme pressure agent, anti rust agent etc. is used. It improves machining performance, but it needs waste fluid disposal that is incineration or coagulative precipitation and so on. It causes huge cost and environmental load. Furthermore, it is afraid of workers health hazard for several chemicals while machining. Therefore, the electric rust preventive machining method system (water machining) is proposed and developed. This method uses only harmless water (tap water etc.) as machining fluid. In this paper, improvement of electric rust preventive chip sedimentation system that is part of water recycle system which is used for machining water purification and re-use. On long time (3 days) preservation of iron chip in water, decreasing of rust and turbidity is examined. Improved electric rust preventive chip sedimentation system is equipped simple circulation filter unit newly and its effectiveness is clarified. When many quantity of iron powder (3kg) likened to actual sludge is sunken in sedimentation water tank, if electric rust prevention and simple circulation filter activated, turbidity and colour would be decreased greatly. Therefore, it is expected that purification load of next part of filters is decreased and life-time of filter and system will be prolonged.