During the lifetime of the Satellite Propulsion System, there are two cases in which water hammer effect occurs in the system: the first one is through the priming phase of the propulsion system, i.e. the opening of the isolation valve; the second one is through the operation of the thrusters, i.e. the sudden closure of the thruster valve following the continuous flow of propellant through valve. Due to the water hammer phenomenon, high pressure surges may be experienced. In order to avoid propellant decomposition in the propellant lines and for the reliability of the system, the aforementioned fluid transient effects should be investigated in detail. From this point of view, a test setup representing a simplified monopropellant propulsion system has been constructed and tests have been performed by utilizing water as the fluid media in ROKETSAN Missile Industries premises.