I wet leather squars, and compress 7 at a time in a 2 ton press I made. I leave them in the press for a couple of hours befor removeing, Then seperate to dry. After they are dry I soak in supper thin supper glue, and re-stack and re-press. I leave the supper glued block in the press over night.
I then square up the sides on the band saw, drill the tange slot, and install on the knife. After I have everything shaped, I put one more coat of thin supper glue on the leather to make sure all the pores are full. Finish sanding, buff, and put a coat of Renisance wax on the blade and handle.
I have had good luck with this method in wet areas.