My alarm is mounted near the engine next to the companionway. It has three wires attached to it directly from the engine. One wire is for oil pressure another for water temperature, the third simply connects the electrical circuit. When turning the engine key on, but before starting the engine, the alarm sounds because there's no oil pressure yet. It also tells you that the alarm is working.
I downloaded Westerbeke engine wiring diagram online. It shows the alarm and colour coded wires that attach to it. When I first got my boat the alarm didn't work because someone had attached the wires incorrectly to the three terminals on the alarm.
Don
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