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Water leaking from a muffler is normal when you have not driven far enough to cause the muffler to be so hot that it turns the water vapor in the exhaust to steam as it exits. The water vapor from the burned gasoline condenses in the exhaust pipe and muffler when the pipes and muffler are cold. This water from condensation is what causes rust in the muffler, and the rust causes the muffler to develop holes.

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