Palome Water Leak

chas

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My Paloma gas water heater has developed a leak. The water is coming from a large lump of metal at the bottom. just above the inlet valve. I do not know its function but it is about 3 inches in diameter and split horizontally, held together with four screws. There appears to be some black sealant between the two halves. This sealant has obviously gone and the water is leaking out. Does anyone know what this sealant is? It looks like black sikaflex. Could it be a rubber gasket that has either melted or perished? If it is, I am not likely to be able to get a new one, so could I use blue hermatite to make the seal?

As you can gather, i am not a whizz with Palomas (It has always worked very well and I have not had to take it apart before), so if anyone has any experience, I would be very grateful for any advice.
 
Sounds to me like the diaphram has gone. There are no spares remaining - mine went a few years ago and I went back as far as the original importer.

Recommend a rinnai as a replacement, its smaller, heats just as well for less gas use, and I use the same flue as the paloma. However, dont forget to get the flue diverter when you buy.
 

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