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1. That probably indicates that the glass liner of your water heater is broken. You'll need to replace the water heater. 2. OR, if the leak is coming from the drain spigot, it could mean that your valve isn't fully closed. If that is the case, turn the knob all the way closed (to the right in the US) and watch for dripping. If it stops, it isn't the liner. If it continues to drip, see step 1.

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