The pump setting depth only helps to know how much pipe you will need to pull. The pump is still only lifting from the actual water level, not the pump setting depth.
Before I get started, I would HOPE that anyone reading anything in this forum takes valveman's advice over mine. I thought I warned everyone but here is the same warning:
"I do not know what I am doing. I am learning,or at least I tell myself that, and sometimes that means paying dearly for mistakes at my own expense." Valveman on the other hand has saved me time, money and injury.
Now, back to my response...
Yes I agree. In reading this again, he did ask what his pump depth was, which is how many feet from the ground level the pump sits. I agree with you that the depth to water is the important number. I mistakenly gave him a method of how to reasonably measure the depth of the dug bore. I missed that key point.
I figured out how far down my pump was hung by yanking it up and measuring the pitless on poly connection to pump connector.
I've always wondered this though. My well depth is 250. The pump is hung at 200. Is the 50 feet just a buffer? Or is it a wise guess that the driller back in the day knew something about the aquifer and its expected behavior?
I ask this because my house is in a development of what we would now call built by sketchy developers that took advantage of the lack of regulation in the early 1970s. The houses went up quickly, and I am inclined to think that they put 250 feet of bore bit on the drill truck and drilled each lot for that no matter what. Then, they costed out pumps and poly and wire and every pump got dropped to 200 no matter what. I guess we can only just guess since all the paperwork is gone or was never made, and regulation wasn't there and the ones that did the install it are now likely dead.
If the OP does measure his whole well's depth, at least by then he will know how far down he will need to feel around in case he accidentally drops his pump down the hole and wants to go get it.