Yes, you can continue using your cold water supply if your water heater is leaking, provided you shut off the cold water inlet valve located directly on top of the water heater to isolate it from the rest of the plumbing system. However, you will have zero hot water until the unit is repaired or replaced. If the leak is massive or threatens electrical panels, shut off the main house water supply. Verification: Test cold water taps to confirm normal operation while keeping the water heater isolated.
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