There appears to be a leak somewhere with my water heater. There is rust
Color within the drain pain and every now and then a drop of water or two.
The metal band at the bottom of the water heater feels like it is rusting.
There is no leakage from the drain valve or any problem with the pressure
Valve. Does this indicate that the tank must be replaced before matters get
Worse.

Usually it does indicate that tank is leaking. But check around the nipples on top of the heater to make sure it doesn't leak from there.

If it is electric heater than turn OFF electricity to the heater. If it is gas water heater than turn OFF gas supply valve to the heater. Call 3 licensed plumbers for free estimates. Pick the one you like the most. Estimates should be given over the phone since water heater installations have set prices. I suggest you do it ASAP.

Back to you. Milo

Hi Gpc and welcome to The Plumbing Page at AMHD.com. You're responding to a 4 year old dead threads so I gave you one of your own. Please check the date before you post.

Quote:

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There appears to be a leak somewhere with my water heater. Does this indicate that the tank must be replaced before matters get
Worse?

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It all depends upon where the leak is located. If the water around the hot and cold inlets then it might be repairable. If the top of the eater is dry open the lower access panel and check for moisture. If you feel moisture on insulation then a weld in the boiler might have opened up as you will have to replace the heater. Good luck Tom

Milo, I agree that a water heater swap out could be a set price, however, without seeing what is really involved, a plumber could get himself into a real mess if you gave a price then show up at the job to find a real mess of piping. I will give a ballpark for a standard swap, but I also let the costumer know that it may be less, or much more depending on what I run into. I prefer to see the situation first hand before giving any estimates, maybe that's just me? Of course I am new as a boss, so I am taking every measure not to give a price then send a bill for much more than my estimate. I want all of my bases covered, and if I can send a bill lower than my estimate, that makes me feel good. Many times I will actually give a discount on hourly rate, or lower my markup on merchandise to make the bill lower than the estimate. Sure, I will never get rich by doing this, but I don't care about getting rich. I care about my costumers, I care about my namesake, I care about doing what is right. Basically, I care. Maybe Im wrong, but in the end I can sleep less fitfully at night, lol.