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Water in the oil is a symptom of failure of the headgasket. You should have the engine checked by a mechanic to verify this issue; there is also the possibility that a crack in your engine is allowing coolant to mix with oil. There are no places where water should be able to leak in from the engine or from the outside of the oil pan, valve cover or dipstick which would not be obvious due to oil leakage. I changed my headgasket in a 98 Jeep Cherokee for about $800 dollars; it would have been around $1500 to have a mechanic do it. You may also be able to use a commercially availalable chemical engine sealant but this is not always successful. That may cost as much as $200 dollars; maybe less. I got about 3 weeks out of a sealant before I had to go for the rebuild. If you plan to keep the vehicle (or, like in my case, need to keep it) I suggest the rebuild. If you plan to diagnose/fix this problem yourself, you will need a Chilton's or similar guide, access to a good machine shop with a knowledgable machinist, tools and enough money to pay for the engine rebuild kit, a torque wrench, oil, filter, spark plugs, wire, distributor and rotor. Best of luck!

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Q: There is water on the oil dipstick on your 1994 Isuzu trooper what might be happening?
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