Yes, the water heater most likely has developed a hole in the pressure tank and is about to go. Most likely, the tank has rusted from the inside - out. It could be just a small hole, or a major patch of the tank that is about to rupture. You're lucky you discovered it first. Replace it immediately.

- John Scates

: My heater appears to be leaking from the base. A large puddle appears when we use it. doe sthis mean the heater is about to go? Or is there something else I can do?