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Hi. I'm Smitty. I am a professional appliance repair consultant here to help you diagnose, and repair, your appliance.
Is this the valve that is leaking?
I thought it was but looking further, there is a fine spray coming through the grate at the bottom of the h/w heater. I'm thinking I will probably have to replace the tank.
Mike, I hate to say it but that is a major failure of the tank itself. Replacement will be needed.
Sorry about the bad news. I wish it could be better.
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