The water pump is the worst place for a temperature sender. The coolant is just coming out of the radiator so at best, you will get a reading that is a few degrees higher than the cooled coolant coming out of the radiator. The coolant still has to pass by 8 cylinders and over 8 combustion chambers. From that perspective, it is no surprise that you are getting a lower than expected reading.
The best place to check the temperature is right behind the thermostat, on the intake. If the device you use to measure is known to be accurate and it is only 170 there and and does not get hotter, then your thermostat is defective or perhaps is was mispackaged, or maybe it is a 160 and poor eyes made it look like 180. The thermostat is opening.The engine simply will not stay cool if the thermostat does not open.
You should see the temperature increase as you measure along the flow of the coolant. The pump will be coolest, the middle of the block will be warmer, the stock sender location will be warmer, the thermostat will be hottest. Do you see that?
Lawrenceville, GA