A bulk of used paper supplied to recycling industry may contain water in their internal voids. This is because the price of the used paper is currently based on their weight and it has a huge potential of suppliers to add with water in order to increase the price. Currently used methods for detecting moisture content in a paper are restricted to a sheet of paper only. This paper presents a non-intrusive method for quick and in-situ measurement of water content in a bulk of used paper. The proposed method extends the capability of common paper moisture gauge, by using a neutron device. A fast neutron source (Am-Be 241) and a portable backscattering neutron detector are used for water measurement. It theoretically indicates that the slow neutron counts can be correlated to the hydrogen or water level in a paper. The method has the potential of being used by the paper-recycling industry for rapid and non-destructive measurement of water in a bulk of used paper.