The transport of liquid water is crucial in water management in Proton Exchange Membrane Fuel Cell (PEMFCs) since the presence of too much liquid water in Porous Transport Layers (PTLs) may block gas transport and cause flooding in the interdigitated cell structure. This study develops a pore-scale Lattice Boltzmann Model (LBM) for liquid water transport in compressed porous media of interdigitated PEMFCs using the Shan-Chen pseudopotential method and the Multiple-Relaxation-Time (MRT) collision operator. The developed model is first validated against Laplace's law, droplet contact angle, and correlations for permeability for single-phase flow in the PTL. The results of the validated model are used to analyze the impact of liquid water injection location on water saturation and drainage. The water is injected into three different locations: beneath the gas inlet, beneath the middle rib region, and beneath the gas outlet. The results show that water saturation and drainage are highly dependent on the water injection location. The highest average water saturation (0.34–0.35) was achieved in the case of inlet-side injection, while the lowest average water saturation (0.12–0.15) was observed when water was injected on the outlet side.