Rackmount appliance for server and rack liquid management and water control policy execution

A Rack Information Handling System (RIHS) has more than one liquid cooled (LC) node containing heat-generating functional components, each LC node configured with a system of conduits to receive cooling liquid to regulate the ambient temperature of the node and provide cooling to the functional components inside the node by removing heat generated by the heat-generating functional components. A liquid control subsystem includes electrically-actuated control valves that selectively distribute cooling liquid to LC nodes each comprising a chassis received in a respective chassis-receiving bay of a rack. Liquid sensors detect a parameter of the liquid control subsystem. A liquid controller communicatively coupled to the electrically-actuated control valves and the liquid sensors detect a rack-level liquid event based at least in part on the parameter and communicates to any LC node that is affected by the rack-level liquid event.