I agree with the other poster that it may be time to consider buying a new water heater. If you do, make sure that each contractor who quotes includes the cost for the expansion tank. Some plumbers do not want to do the extra piping even though the expansion tank is required by the code. They will call it a "repair", not a replacement, and claim that the code doesn't apply to a repair. Also, they should install an overflow pan with a drain under the water heater if you don't already have one.
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