Re: rust in water
Rust is not caused by water, it is caused by oxygen and warmth. Any part of the iron internals will rust if it is exposed to air. Iron and steel submerged underwater will oxidise but more slowly than those exposed to the atmosphere. It is quite likely that rust has formed where there has been an air space in the engine. Antifreeze and other inhibitors prevent the oxidisation caused by water.
For my information: What is soluble oil? It's not something I've heard of before reading this thread.
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