In this study, we develop a pressure observer to measure the cylinder length of a harbor-construction robot. For the robot control, sensors are required to measure the length of a hydraulic cylinder. The cylinder-position sensor is relatively expensive when the operating environment prohibits external approaches for the measurement of the cylinder position. LVDT or linear scales are usually mounted on the outside of the cylinder, which causes poor durability on a construction site. We use a pressure sensor to indirectly estimate the length of the cylinder. The pressure sensor is mounted inside a hydraulic valve box so that it is protected by the box and easy to waterproof for an underwater robot. By treating oil as a compressible fluid, we derive the nonlinear pressure dynamics as a function of the cylinder position, velocity, and pressure. The recursive least squares (RLS) algorithm is applied to identify the dynamic parameters, and the pressure observer estimates the cylinder position through the pressure acting on the head and the rod of the hydraulic cylinder. The position accuracy is relatively low, but it is acceptable for a construction robot that handles large armor stones.