Finding rusty water leaking from your water heater is a critical warning sign indicating that the interior steel tank has suffered advanced corrosion and rusted through its walls. Unlike external condensation or clean water leaks from loose plumbing fittings, a rusty leak means the protective glass lining and sacrificial anode rod are completely gone, and the structural integrity of the tank has failed. Such a leaking tank cannot be repaired and is at extreme risk of a sudden, catastrophic rupture. Verification: Shut off the water supply and power source immediately to prepare for total unit replacement.
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