Trish, keep the lower float near the bottom of the hole and the upper one near the top. Not at the top for the water level will be too high under the basement floor and may seep in from cracks etc. The sump is in the lowest part of the basement and should drain the water from the tile that surrounds the foundation. The water is probably going into the storm sewers if you have them. We not it drains to the ditch in an underground pipe. When the water level hits the upper float the sump should start then pump the water down to a level determined by the lower float. You may have to play with it several times to ensure the correct level. Keep and eye on it. Many a flooded basement is caused by the pump failing or a dirty float switch. It is a good idea to test it in the Spring by lifting the floats and ensuring it pumps. Also, make sure that you have nothing else on the same circuit. Heavy start load caused by additional items such as a dehumidifier can over load the circuit.