Probably not the safest way to test it. Pushing the little 'test' button is the safe way.

This is kind of like testing a bullet proof vest by putting it on and asking your buddy to shoot you.

My guess would be that the water didn't actually get into the connection during your indoor test, but it did during your outdoor one.

Thought I'd pop back and say that there is also the possibility that your indoor GFCI isn't working. Either the unit is faulty or maybe the feed is wired into the load screws instead of the line screws. (I'm not sure if the latter would allow the receptacle to work at all or if it would negate the GFCI protection)

But again, the way to test it is the 'test' button.

Does the test button work?

Did the circuit breaker trip?

"I dropped the connection into water" - - this connection?

Frankly, I think we're being trolled but a GFCI isn't magic. It does not DETECT water. It detects when more than a few milliamps goes out one side of it and doesn't come back in the other. The one failure it can't detect is if you put stick one finger in one blade and the other finger into the other blade (and are otherwise electrically isolated). As far as the GFCI is concerned you're a normal load. The reason why GFCI is a good safety feature is more often than not you're not connected across both wires in the receptacle but between one and some other ground somewhere.

• I dropped the connection into water so there's no doubt that water would
  come in contact with electricity. It did not trip the GFI. Why? I
  did the same thing with an outdoor GFI and it tripped instantly.

How did you ground the water? Did you use the same water for the outdoor test?

The water outside was my pond. The water inside was in the sink. My assumption was that if an electric appliance (hairdryer, electric shaver, etc) was being used and was accidentally dropped into the sink or bathtub there would be a danger of electrocution---hence the use of a GFI. Also, it is a dedicated circuit and connected to the "line" screws. I find the question from dennisgli interesting, "how did I ground the water?" So, water in a porcelain sink would not be grounded? Or would it? I'm thinking I don't understand something about what I did. Additionally, I had no intention of putting my hand in the water; I wasn't about to go that far to find out if my GFI worked. The test button works.

Again, I guess there is something I don't quite understand. Ron said a GFI doesn't detect water. I'm assuming that something else has to be introduced into the test such as a person in a bathtub or hand in a sink which I wouldn't do to test it. Does a GFI work because by introducing a person into the water it becomes a ground for the electricity therefore the difference in what is returning thru the neutral is detected.

Did the extension cord have a proper ground wire? ..... and make sure to answer ALL the questions. The specifics matter. A porcelain sink is not grounded, a mud puddle on the ground is.

A lot like if a power line drops on your car, you won't get electrocuted if you stay inside, you won't necessarily get shocked if you are in a bathtub, and the hair dryer is dropped in... until you try to get out and have one foot on the floor, and one in the tub.

Distilled, or RO filtered water is not as good of a conductor.

Are the drain pipes from the sink metal (copper or cast iron) or plastic or ceramic? Only metal is a conductor and it's possible that cast iron sewer pipes have insulating material between their sections. Of course, most late 20th century or 21st century drains will be plastic, so the water won't make a good ground.

Except for traps, there's not supposed to be any standing water in the drains. Nothing says the tailpiece of your sink is electrically connected to the drain either. A lot of tailpieces are plastic.

I can't look at the drain now; it is at my daughters house. All plastic drain, so ceramic or porcelain to plastic.. The test button works, the power was on at the circuit breaker and it did not trip. From the questions I think I understand this better. I'm assuming there was no grounding so no difference for the GFI to detect and therefore trip.

Did the extension cord at the sink have a proper ground?

Did the extension cord at the pond have a ground wire?

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If the circuit breaker didn't trip, then you were not getting much current between the hot and neutral either.