This paper investigates phenomena related to water condensation behavior inside a polymer electrolyte membrane fuel cell (PEMFC), and analyzes the effects of liquid water and gas flow on the performance of the fuel cell. A method for simultaneous measurements of the local current density across the reaction area and direct observation of the phenomena in the cell are developed. Experimental results comparing separator types indicate the effect of shortcut flow in the gas diffusion layer (GDL) under the land areas of serpentine separators, and also show the potential of straight channel separators to achieve a relatively uniform current density distribution. To evaluate shortcut flows under the land areas of serpentine separators, a simple circuit model of the gas flow is presented. The analysis shows that slight variations in oxygen concentration caused by the shortcut flows under the land areas affect the local and overall current density distributions. It is also shown that the establishment of gas paths under the water in channels filled with condensed water is effective for stable operation at low flow rates of air in the straight channels.