A dry fire protection system for a water heater is provided. The water heater includes a body having an elongated hollow for holding water to be heated, an inlet opening and an outlet opening in communication with the hollow for flowing water therethrough. A heating element is coupled to the body for heating the water within the hollow. The dry fire protection system comprises a sensing element disposed in the hollow of the body for detecting the presence of water in the hollow. The sensing element is spaced from and operably connected to the heating element. The sensing element is configured to generate a voltage in response to a temperature of the sensing element. A controller is operably connected to the sensing element for monitoring the generated voltage across the sensing element. The controller is configured to prevent a supply of electrical power to the heating element as a function of the generated voltage.