By Vance McClenton, owner · Updated October 10, 2026 · 5 min read
The short answer
If water is pooling under your water heater, turn off the power or gas to the heater and close the cold-water valve on top. A leak from a fitting, valve, or the relief valve can often be repaired. A leak from the tank itself — water seeping from the bottom or the side of the tank — means the tank has rusted through, and the water heater needs to be replaced.
What to do in the next ten minutes
You don't need to panic, but don't ignore it either. A small drip can turn into a flooded basement if the tank lets go.
- Turn off the heat source. For a gas heater, turn the gas control knob to OFF or PILOT. For an electric heater, switch off its breaker.
- Close the cold-water shut-off valve on the pipe going into the top of the heater.
- Move anything you care about away from the water and put down towels.
- Don't touch the drain valve or the relief valve. The water inside can be scalding hot.
- Call a licensed plumber.
Where is the water coming from?
Finding the source tells you whether this is a repair or a replacement. Look carefully, using a flashlight, before you wipe anything up.
- Pipes and fittings on top: loose connections or corroded fittings. Usually repairable.
- The relief valve (the valve with a lever, often with a pipe running toward the floor): it may be failing, or the water pressure or temperature may be too high. The valve can be replaced, but the cause needs to be checked too.
- The drain valve near the bottom: it may not be closed tight, or the valve may be worn. Often repairable.
- The tank itself — water seeping from the bottom seam, the side, or under the jacket: the steel tank has corroded through. This can't be repaired. The heater needs to be replaced.
- Condensation: a new heater or a cold day can cause a little condensation, which stops once the water warms up. Ongoing pooling is not condensation.
Repair or replace?
Most tank water heaters last roughly 8 to 12 years. If yours is in that range and it's leaking from the tank, replacing it is the only real option. If it's newer and the leak is from a fitting or valve, a repair usually makes sense.
You can often find the manufacture date on the label on the side of the tank. Hard water shortens a heater's life, so a heater on untreated well water may wear out sooner.
Do you need a permit to replace a water heater in Michigan?
Yes. Replacing a water heater in Michigan is permitted work, and the State's water heater permit calls for inspections before the new heater is covered up or put into use. A contractor pulling the permit has to hold both plumbing and mechanical licenses. When we replace a water heater, we pull the permit and schedule the inspection for you.
Tank or tankless for the replacement?
A like-for-like tank replacement is the fastest and least expensive way to get hot water back. A tankless water heater costs more up front but gives you endless hot water and typically lasts much longer. If you're replacing anyway, it's a good time to ask which fits your home.
Frequently asked questions
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Sources
This article is general information, not legal advice. Local building departments make the final call on permits.
