The Hydrodisplacer was a Gadgetron gadget that Ratchet could use to drain and fill pools with water, therefore "displacing" it. The volume of water that could be contained inside a Hydrodisplacer was far greater than the gadget's external volume may have indicated (in this case, 50,000 liters). Clank found the Hydrodisplacer at the Blarg Tactical Research Station while exploring the ships. It uses Quantum compression technology to manipulate the water particles and place them into a compression tank.
There were several elements in Ratchet & Clank, and the water levels were an interesting addition, and with them came interesting but logical gadgets like the Hydrodisplacer.
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When the Hydrodisplacer is used, it seems to be able to suck up much more water into the gadget than possible.
The Hydrodisplacer used to look way different than the final version. The early Hydrodisplacer is seen in the profile picture, while the one found in the actual game is seen in the smaller picture.