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The Fuel Strainer acts as a water seperator too...

"The Saran sock material has a nominal pore size of 130 microns. In addition to acting as a particle filter for the mechanical lift pump, the Saran tank filter acts as a wick to pick up fuel from the bottom of the tank and as a water filter; water is excluded on the basis of the difference in surface tension between the water and the sock material on the one hand and the fuel and the sock material on the other."
 
hard to believe a diesel engine would have a filter designed with such a small area for water to collect...
I'm SUPER glad I have my giant steel water seperating filter in front of the stock one! I have a QUART of water capacity before any makes it up to the fuel line going to the stock filter now!
Only a quart? You should get a 78-85 GM diesel car where they had about 2 1/2 gallon water capacity. Only problem is it was that was in the tank. Their idea was they just lifted the fuel pickup off the bottom of the tank and figured the water would stay in the bottom. The water in fuel sensor got added around 80 and was on the sending unit. From what I read it was common to have that much water in the tank back in those early days. Idea was 2 1/2 gallons was enough to get you between oil changes and when you got your oil changed the tech would drain the water out of you fuel tank.
 
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