Can you take a pic of the entire water heater area?
That is the answer.You will have to shut off all water into the home, drain the tank, then install a shut off valve before turning the water back on.
Update: Since I did the attempt to drain the hot water heater, it seems to have cleared some rusty colored water (I had a sink faucet going too that's how I saw it.). Seems to have greatly cut down or stopped the leakage for now. Saturday I went looking at water heaters (dang they are expensive) and have a plumber coming Tuesday or Wednesday to give a quote to replace old with new. (free quote, but labor starts at $400, that's more than I expected). But, so far, I have the funds set aside.
I will be insisting on sitting it in a pan, and having a way to turn the water off as it goes into the hot water heater, so I can drain once a year or so without having to try to turn off the in ground water main. So, things are getting done.
I have been using a small shop vac wet/dry on the area to pull out all the wet I can. Recently very little coming out of carpet, hot water tank area.
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