The reason to use distilled water is that it does not have any calcium or iron in it. If you use tap water and you have high calcium content then you can plug the radiator/heater core faster.
I have been using the premixed Cool guard from John Deere the last few years in all of my diesels. (there are others brands out there but I get a better discount on the Deere stuff) It is not that high and the blocks do seem to stay cleaner. I had to tear into an engine I had rebuilt a few years ago. It did not seem to have as much rust and stuff in the water jacket.
If you don't think it is worth the extra cost then do use distilled water. Rain water will work too.
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Today's Featured Article - Earthmaster Project Progress Just a little update on my Earthmaster......it's back from the dead! I pulled the head, and soaked the stuck valves with mystery oil overnight, re-installed the head, and bingo, the compression returned. But alas, my carb foiled me again, it would fire a second then flood out. After numerous dead ends for a replacement carb, I went to work fixing mine.I soldered new floats on the float arm, they came from an old motorcycle carb, replaced the packing on the throttle shaft with o-rings, cut new ga
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