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Discuss Is it time for a new water heater? in the USA Plumbing Advice Forum area at PlumbersForums.net
They posted this twice said that was a possible on other post.Looks like the sacrificial anode has rusted away and leaking through the threads.
Not worth messing around with, unless you can source another anode.
I probably wouldn't bother because if the anode has rusted that much, the cylinder would be in the same state.
Replace unit
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