I've seen circuits to use capacitance, but you still need
salt water since it must be conductive to form 
one plate of the capacitor.  You arrange a metal cover
or top over the water that forms the other plate of the capacitor  and
drive it with some relatively high frequency alternating supply
and measure the current flow with an A.C.microampmeter
and calculate the reactance that changes with the height
of the water and the closing of the air space.

Oops, you just covered over the bucket!!! 

That has been done for things like sumps and boat bilges
but not for rain gauges.

Another scheme I've heard of is to have a smallish calibrated cup that
holds maybe the equivelent of half an inch of rain.  When this fills its weight
causes it to spill out into a bucket, and this tilt/spill clicks
some kind of counter.

Tom

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