Yes, water vapor contained in the air within the fuel tank can condense on the cool inside surfaces of the fuel tank. This water can be absorbed by the fuel, both gasoline or gasoline/10% ethanol blend. Reducing the ability of the tank to breathe in air is good practice regardless of the fuel used. Most carburetors are vented in some manner, therefore fuel in the float bowl is also subject to breathing and water condensation.
Best practice for me is: store with the tank full, limit venting, use a tank shut off valve, either drain the float bowl or run the engine until it drains the bowl.
It is interesting (at least to me) to note that gasoline @ 60 degrees can absorb 0.15 teaspoons of water. Conversely, gasoline/10% ethanol @ 60 degrees can absorb 3.8 teaspoons of water before separation occurs. It is my feeling that if you have water problems with a gasoline/ethanol blend the fuel may have been "wet" at the time of purchase.
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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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